The fixed overhead volume variance compares how many units you actually produce to how many you should be producing. To calculate the variance, multiply the standard volume by the overhead rate. Multiply the actual volume by the overhead rate. Subtract the standard amount from the actual amount to get the variance.Click to see full answer. Beside this, how do you calculate overhead variance?fixed production overhead volume capacity variance. The difference between the actual number of hours worked and the budgeted number of hours. This figure is then multiplied by the overhead rate for an hour of labor.Also, what are the fixed overhead price and production volume variances? Key Takeaway. Two variances are calculated and analyzed when evaluating fixed manufacturing overhead. The fixed overhead spending variance is the difference between actual and budgeted fixed overhead costs. The fixed overhead production volume variance is the difference between budgeted and applied fixed overhead costs One may also ask, how do you calculate volume variance? To calculate sales volume variance, subtract the budgeted quantity sold from the actual quantity sold and multiply by the standard selling price. For example, if a company expected to sell 20 widgets at $100 a piece but only sold 15, the variance is 5 multiplied by $100, or $500.How do you calculate fixed overhead absorption rate?The budgeted fixed overheads divided by the budgeted standard hours, budgeted production in units, or other budgeted production measure. See absorption rate.