ECONOMICS

Detailed explanation-1: -It can be in association with production or sales. It is not used to measure the fixed overhead. But maybe used to study the difference between planned fixed overhead, and the fixed costs actually incurred. Hence this statement is false.

Detailed explanation-2: -Fixed overhead volume variance is the difference between the amount budgeted for fixed overhead costs based on production volume and the amount that is eventually absorbed. This variance is reviewed as part of the cost accounting reporting package at the end of a given period.

Detailed explanation-3: -fixed overhead spending. |No, the volume variance does not measure spending differences, the budget variance does.

Detailed explanation-4: -The fixed overhead volume variance is the difference between the amount of fixed overhead actually applied to produced goods based on production volume, and the amount that was budgeted to be applied to produced goods. This variance is reviewed as part of the period-end cost accounting reporting package.

Detailed explanation-5: -A volume variance is the difference between the actual quantity sold or consumed and the budgeted amount expected to be sold or consumed, multiplied by the standard price per unit.