A company uses a two-variance analysis for overhead variances, controllable and volume. The volume variance is the difference between the factory overhead applied at standard and: a. Total factory overhead per the flexible budget. b. Actual factory overhead incurred. C. Total factory overhead per the master budget. d. Fixed overhead incurred. ANS: A The volume variance is the difference between the factory overhead applied at standard and the factory overhead per the flexible budget (standard overhead budgeted for actual level of production.).