A company currently uses a standard absorption costing system. The fixed overhead variances extracted from the operating statement for November are：Fixed production overhead expenditure variance Fixed production overhead capacity variance Fixed production overhead efficiency variancePQ Limited is considering using standard marginal costing as the basis for variance reporting in future. What variance for fixed production overhead would be shown in a marginal costing operating statement for November?
A、No variance would be shown for fixed production overhead
B、Expenditure variance： $5,800 adverse
C、Volume variance： $2,800 favourable
D、Total variance： $3,000 adverse
A、No variance would be shown for fixed production overhead
B、Expenditure variance： $5,800 adverse
C、Volume variance： $2,800 favourable
D、Total variance： $3,000 adverse
【参考答案及解析】
The only fixed overhead variance in a marginal costing statement is the fixed overhead expenditure variance. This is the difference between budgeted and actual overhead expenditure, calculated in the same way as for an absorption costing system.There is no volume variance with marginal costing, because under or over absorption due to volume changes cannot arise.
The only fixed overhead variance in a marginal costing statement is the fixed overhead expenditure variance. This is the difference between budgeted and actual overhead expenditure, calculated in the same way as for an absorption costing system.There is no volume variance with marginal costing, because under or over absorption due to volume changes cannot arise.