Accounting · Management Accounting
Which of the following statements regarding fixed overhead volume capacity variance are true? (i) The fixed overhead volume capacity variance represents part of the over/under absorption of overheads. (ii) If a company works fewer hours than budgeted, this will result in an adverse fixed overhead volume capacity 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
Both (i) and (ii) are true
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