Answer (D) is correct . The fixed overhead production volume variance is the difference between the static/flexible budget for fixed overhead and the amount allocated based on the budgeted allocation rate and the driver level allowable for the actual production level achieved. None of these factors are under the control of the production manager.
Answer (A) is incorrect because The variable overhead spending variance is due to factors within the control of the production manager.
Answer (B) is incorrect because The labor efficiency variance is due to factors within the control of the production manager.
Answer (C) is incorrect because The materials quantity variance is due to factors within the control of the production manager.
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