Answer (B) is correct . The fixed overhead volume variance is the difference between budgeted fixed costs andl overhead applied, which equals the budgeted fixed overhead rate times the standard input allowed for the actual output. It is solely a measure of capacity usage and does not signify that fixed costs were more or less than budgeted.
Answer (A) is incorrect because The fixed overhead volume variance concerns the application of fixed cost to product and does not encompass revenue or sales concepts in any way.
Answer (C) is incorrect because The fixed overhead volume variance is calculated on the assumption that fixed costs are constant.
Answer (D) is incorrect because The volume variance concerns output levels rather than the efficiency of production.
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