Accounting · Management Accounting
Which of the following statements regarding fixed overhead variances are true? (i) A favourable fixed overhead volume capacity variance occurs when actual hours of work are greater than budgeted hours of work. (ii) A labour force that produces 5,000 standard hours of work in 5,500 actual hours will give a favourable fixed overhead volume efficiency variance.
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1(i) is false and (ii) is true
- 2Both (i) and (ii) are false
- 3Both (i) and (ii) are true
- 4(i) is true and (ii) is false✓
Correct answer
(i) is true and (ii) is false
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