Which of the following variances is not used in a standard cost system?
A) Variable overhead spending variance.
B) Fixed overhead spending variance.
C) Variable overhead efficiency variance.
D) Fixed overhead efficiency variance.
E) Fixed overhead volume variance.

Question

Quizplus · Accepted Answer

Fixed overhead efficiency variance is not used in a standard cost system because fixed overhead costs do not vary with production levels, so efficiency variances are not applicable.

Which of the Following Variances Is Not Used in a Standard