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A company uses a two-variance analysis for overhead variances, controllable and volume. The volume variance is based on the: Group of answer choices

a. Fixed overhead application rate.
b. Volume of total expenses at various activity levels.
c. Variable overhead application rate.
d. Total overhead application rate.

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tahneetakhan

Answer:

A. Fixed overhead application rate.

Explanation:

A fixed overhead variance that represents the difference between budgeted fixed overhead and fixed overhead applied to production of the period; is also referred to as the non-controllable variance.

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