Question: The fixed factory overhead application rate is a function of a predetermined activity level. If standard hours allowed for good output equal this predetermined activity

The fixed factory overhead application rate is a function of a predetermined activity level. If standard hours allowed for good output equal this predetermined activity level for a given period, the volume variance will be

A. Zero

B. Favorable.

C. Unfavorable.

D. Either favorable or unfavorable, depending on the budgeted overhead.

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