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18 March, 14:03

A company uses a two-variance analysis for overhead variances, controllable and volume. The volume variance is based on the: Group of answer choices

a. Fixed overhead application rate.

b. Volume of total expenses at various activity levels.

c. Variable overhead application rate.

d. Total overhead application rate.

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  1. 18 March, 16:21
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    A. Fixed overhead application rate.

    Explanation:

    A fixed overhead variance that represents the difference between budgeted fixed overhead and fixed overhead applied to production of the period; is also referred to as the non-controllable variance.
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