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

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