Answer (C) is correct . The volume variance is the difference between budgeted fixed overhead and the amount applied based on the standard overhead rate and standard input for the actual output.
Answer (A) is incorrect because A price variance is the difference between the expected and actual outlays caused by a variation in price.
Answer (B) is incorrect because The combined price-quantity variance is the total actual outlay (actual quantity ¡Á actual price) minus the budgeted outlay (standard price ¡Á standard quantity).
Answer (D) is incorrect because A mix variance results when the actual sales or production mix differs from the budgeted mix. | 
