Production Volume Variance Multiple Choice Questions with Answers – PDF Download

MCQ 1: The production volume variance is also called:

1. denominator level variance
2. numerator level variance
3. price level variance
4. cost level variance

MCQ 2: If the fixed overhead allocated for actual output unit is $7500 and budgeted fixed overhead is $21000, then the production volume variance will be:

1. $16,500
2. $15,500
3. $14,500
4. $13,500

MCQ 3: If the fixed overhead allocated for actual output unit is $9800 and budgeted fixed overhead is $22000, then production volume variance would be:

1. $31,800
2. $12,300
3. $12,200
4. $41,800

MCQ 4: If fixed overhead allocated for actual output units is $36000 and the production volume variance is $7000, then budgeted fixed overhead will be:

1. $43,000
2. $42,000
3. $29,000
4. $19,000

MCQ 5: In production volume variance, an acquiring fixed cost such as equipment and plant lease is known as:

1. lump sum price amount
2. lump sum fixed cost
3. lump sum variable cost
4. lump sum manufacturing cost