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Hi, in BPP exam kit question 22.14, it asks to calculate the total adverse fixed production overhead variance.
I have two questions:
1. Shouldn’t the total fixed production overhead variance mean the fixed overhead expenditure variance. In the answer to the question, the answer is derived by calculating the fixed overhead volume variance which doesn’t make sense to me as it doesn’t state that in the question.
2. In your lectures you said that the fixed overhead volume variance will be favorable if the actual units produced are more than budgeted but in this specific question it says it is adverse even though the units produced are more than budgeted. How does that make sense?
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