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Which of the following statements is correct about interpreting the fixed overhead variances?
The budget variance is the real control variance for fixed overhead.
A volume variance results when actual fixed overhead is different from the standard inputs
allowed for actual output.
The efficiency variance reveals the efficient or inefficient use of fixed overhead.
The budget variance is the real control variance for fixed overhead.
A volume variance results when actual fixed overhead is different from the standard inputs
allowed for actual output.
The efficiency variance reveals the efficient or inefficient use of fixed overhead.
Solution
Answer:
Fixed overhead variances is the difference between budgeted fixed overhead and actual fixed
overheads.
Hence The budget variance is the real control variance for fixed overhead.

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Which of the following statements is correct about interpreting the fi.docx

  • 1. Which of the following statements is correct about interpreting the fixed overhead variances? The budget variance is the real control variance for fixed overhead. A volume variance results when actual fixed overhead is different from the standard inputs allowed for actual output. The efficiency variance reveals the efficient or inefficient use of fixed overhead. The budget variance is the real control variance for fixed overhead. A volume variance results when actual fixed overhead is different from the standard inputs allowed for actual output. The efficiency variance reveals the efficient or inefficient use of fixed overhead. Solution Answer: Fixed overhead variances is the difference between budgeted fixed overhead and actual fixed overheads. Hence The budget variance is the real control variance for fixed overhead.