The formula to compute the overhead volume variance is: (a) Fixed overhead rate x (Standard hours -

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The formula to compute the overhead volume variance is:

(a) Fixed overhead rate x (Standard hours - Actual hours).

(b) Fixed overhead rate x (Normal capacity hours - Actual hours).

(c) Fixed overhead rate x (Normal capacity hours - Standard hours allowed).

(d) (Variable overhead rate + Fixed overhead rate) x (Normal capacity hours - Standard hours allowed).

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Financial And Managerial Accounting

ISBN: 9781118004234

1st Edition

Authors: Donald E. Kieso, Paul D. Kimmel, Jerry J. Weygandt

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