Rowe Corporation reported the following variances for the period just ended:
Variable-overhead spending variance: $50,000U
Variable-overhead efficiency variance: $28,000U
Fixed-overhead budget variance: $70,000U
Fixed-overhead volume variance: $30,000U
If Rowe prepared an overhead cost performance report, which of these overhead variances is likely to be excluded from the report?

Question

Quizplus · Accepted Answer

The fixed-overhead volume variance is typically excluded from an overhead cost performance report because it relates to the level of production activity rather than the efficiency or spending control of overhead costs.

Rowe Corporation Reported the Following Variances for the Period Just