The volume variance is nonzero whenever:
A. standard hours allowed for the output of a period differ from the actual hours during the period.
B. standard hours allowed for the output of a period differ from the denominator level of activity.
C. actual fixed manufacturing overhead costs incurred during a period differ from budgeted fixed manufacturing overhead costs as contained in the flexible budget.
D. actual hours differ from the denominator level of activity.
Answer: B
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