Dori Castings Is a Job Order Shop That Uses a Standard

Multiple Choice

Dori Castings is a job order shop that uses a standard cost system to account for its production costs. Manufacturing overhead costs are applied to production on the basis of direct labour hours.
-Dori's choice of a production volume as a denominator for calculating its predetermined overhead rate will have NO effect on which of the following?

A) The fixed portion of this rate, which is used for applying costs to production.
B) The variable portion of this rate, which is used for applying costs to production.
C) The fixed overhead budget variance.
D) The fixed overhead volume variance.