[dame23]

Hi John

Thanks for the reply. Sorry I made a mistake in the original question, the adverse fixed overhead volume variance is 12900.

After adding the two fixed overhead variances you get under absorption of 4400. So then

4.2 * actual activity level = 69500 – 4400

Then if you work out for the actual activity level you get 15500 the answer. So is this right or am I still mixing up standard wording ect

Many thanks for you help with this

[Author]

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