DBC Company applies fixed overhead at $8 per machine hour. During the year actual fixed overhead amounted to $75 000 and the standard machine hours allowed for units produced was 11 000. Budgeted fixed overhead was $80 000. Which of the following is the best description of the items used to calculate the volume variance?

Question

DBC Company applies fixed overhead at $8 per machine hour. During the year actual fixed overhead amounted to $75 000 and the standard machine hours allowed for units produced was 11 000. Budgeted fixed overhead was $80 000. Which of the following is the best description of the items used to calculate the volume variance?
DBC Company applies fixed overhead at $8 per machine hour. During the year actual fixed overhead amounted to $75 000 and the standard machine hours allowed for units produced was 11 000. Budgeted fixed overhead was $80 000. Which of the following is the best description of the items used to calculate the volume variance? A) B) C) D)

Quizplus · Accepted Answer

The volume variance measures the difference between the actual hours worked and the standard hours allowed. In this case, the standard hours allowed were 11,000 and the actual hours worked are not provided. However, the items used to calculate the volume variance are the same as the standard hours allowed, which is choice A.

DBC Company Applies Fixed Overhead at $8 Per Machine Hour