The correct answer is: Fixed production overhead volume variance.
The fixed production overhead volume variance explains the under or over absorption of overhead that occurs due to a difference between the budgeted and actual production volume. This situation cannot arise in a marginal costing system because fixed production overhead is not absorbed into production costs.
A sales contribution variance would be calculated in a standard marginal costing system. The difference in sales volume would be valued at the standard contribution per unit, however, rather than at the standard profit per unit which is used in an absorption costing system.
An idle time variance would be calculated in a standard marginal costing system, (but only if idle time arose). The idle time variance is always adverse and it is usually calculated by multiplying the number of idle hours by the standard labour rate per hour.
The fixed production overhead expenditure variance is the only fixed overhead variance that is shown in a standard marginal costing operating statement. It is the difference between the budgeted fixed production overhead and the actual fixed production overhead for the period.
