Question

5) For *fixed manufacturing overhead*, there is no ________.

A) spending variance
B) efficiency variance
C) flexible-budget variance
D) production-volume variance

Answer 1

Fixed manufacturing overhead does not have a production-volume variance.

Step-by-step explanation:

Fixed manufacturing overhead refers to the costs that do not change regardless of the level of production. These costs are considered fixed because they remain constant in the short run. The four types of variances associated with fixed manufacturing overhead are spending variance, efficiency variance, flexible-budget variance, and production-volume variance. Among these, the correct answer is D) production-volume variance, as fixed manufacturing overhead does not have a production-volume variance because it remains the same regardless of the level of production.