Flexed Fixed Overhead – Variance Analysis

It is only if we are using absorption costing.
If we are using absorption costing then the standard profit is after charging fixed overheads at the standard absorption rate.

Therefore if we sell more or less units, then the standard profit will automatically be flexing the fixed overheads. This is what gives rise to the fixed overhead volume variance.

I do assume that you are watching our free lectures (and I do explain this within the lectures). If you are not able to watch the lectures then you should not be using the lecture notes because they are only lecture notes and it is in the lectures that I explain and expand on the notes.