Chapter 9, Problem 21Q

To determine

Concept introduction:

Fixed overhead volume variance:

It is the difference between the fixed overhead incurred actually to manfacture goods, as per the volume which is calculated by multiplying fixed overhead rate, with actual volume and the fixed overhead that ought to be incurred, i.e., budgted to manfacture goods as per the volume which is calculated by multiplying fixed overhead rate with budgeted volume.

To interpret:

The favorablefixed overhead volume variance.