Question

Which of the following statements are true? (i) The fixed overhead volume capacity variance represents part of the over/under absorption of overheads (ii) A company works fewer hours than budgeted. This will result in an adverse fixed overhead volume capacity variance (i) is true and (ii) is false Both are true Both are false (i) is false and (ii) is true

   Which of the following statements are true?
(i) The fixed overhead volume capacity variance represents part of the over/under absorption of overheads
(ii) A company works fewer hours than budgeted. This will result in an adverse fixed overhead volume capacity variance
(i) is true and (ii) is false
Both are true
Both are false
(i) is false and (ii) is true
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ACCA FMA/FA Foundations in Accountancy-Management Accounting Interactive Text (Practice Revision Kit Not Included)
ACCA FMA/FA Foundations in Accountancy-Management Accounting Interactive Text (Practice Revision Kit Not Included)
BPP Learning Media 1st Edition
Chapter 14, Problem 17 ↓

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Fixed overhead volume capacity variance measures the difference between the budgeted fixed overheads and the actual fixed overheads incurred due to the difference in the capacity utilized. It is a component of the total overhead variance and specifically reflects  Show more…

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Which of the following statements are true? (i) The fixed overhead volume capacity variance represents part of the over/under absorption of overheads (ii) A company works fewer hours than budgeted. This will result in an adverse fixed overhead volume capacity variance (i) is true and (ii) is false Both are true Both are false (i) is false and (ii) is true
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