Answer:
The production volume variance is associated with a standard costing system used by some manufacturers. This variance indicates the difference between:
1) the company's budgeted amount of fixed manufacturing overhead costs
2) the amount of the fixed manufacturing overhead costs that were assigned to (or absorbed by) the company's production output.
1) the company's budgeted amount of fixed manufacturing overhead costs
2) the amount of the fixed manufacturing overhead costs that were assigned to (or absorbed by) the company's production output.
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