B. The fixed overhead volume variance (also called the fixed overhead production-volume variance) is the budgeted amount of fixed overhead minus the amount of fixed overhead applied (standard rate × standard quantity of application base allowed for the actual level of output). See the correct answer for a complete explanation.

C. The fixed overhead volume variance (also called the fixed overhead production-volume variance) is the budgeted amount of fixed overhead minus the amount of fixed overhead applied (standard rate × standard quantity of application base allowed for the actual level of output). See the correct answer for a complete explanation.

D. The fixed overhead volume variance (also called the fixed overhead production-volume variance) is the budgeted amount of fixed overhead minus the amount of fixed overhead applied (standard rate × standard quantity of application base allowed for the actual level of output). The fixed overhead rate was estimated to be $3.00 per unit and 200,000 units were scheduled for production. The total budgeted fixed overhead was $600,000 ($3.00 × 200,000). Two hours of labor are the standard required to produce one unit. Thus, the application rate is $1.50 per direct labor hour ($3.00 ÷ 2). The standard direct labor hours allowed for the actual output were 396,000 (2 × 198,000 actual production in units). The applied overhead equals $594,000 ($1.50 × 396,000). We also could calculate the amount of applied overhead using actual units produced and the unit fixed overhead application rate ($3.00 × 198,000) which gives the same answer: $594,000. Thus, the fixed overhead volume variance is $6,000 unfavorable ($600,000 - $594,000). The applied amount was less than the budgeted amount which means that some amount of overhead wasn't applied to the final product i.e. it was underapplied. The variance is caused by the fact that production was planned to be 200,000 units but only 198,000 units were actually produced. The facilities were not used at the level that was planned.