The formula for computing the overhead volume variance is
fixed overhead rate times (actual hours less standard hours allowed).
b. variable overhead rate times (actual hours less standard hours allowed).
c. fixed overhead rate times (normal capacity hours less standard hours allowed).
variable overhead rate times (normal capacity hours less standard hours allowed).
a. fixed overhead rate times (actual hours less standard hours allowed).
b. variable overhead rate times (actual hours less standard hours allowed).
c. fixed overhead rate times (normal capacity hours less standard hours allowed).
d. variable overhead rate times (normal capacity hours less standard hours allowed).
Solution
Formula for computing the overhaed volume variance = ( Actual hours - Standard hours allowed
) * Fixed overhead rate
Answer is A