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Fixed Overhead Volume Variances Arise Because

Question 118

Multiple Choice

Fixed overhead volume variances arise because:


A) Budgeted overhead and actual overhead are usually identical
B) An estimate of production volume is used for the denominator in calculating the fixed overhead allocation rate
C) The actual amount of direct materials is not identical to the budgeted level
D) The actual amount of fixed overhead costs in not identical to the budgeted level

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