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The fixed overhead application rate is a function of a predetermined normal activity level. If standard hours allowed for good output equal this normal activity level for a given period, the volume variance will be

A. zero.

B. favorable.

C. unfavorable.

D. either favorable or unfavorable depending on the budgeted overhead.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M993222

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