Question

The activity level variance for fixed costs equals zero when

Answer 1

The activity level variance for fixed costs is came only when there is difference in production and static budget and this due to fixed cost charged on production on the basis of recovery rate and when production and static budgets are the same than allocation of fixed cost recovery is same as charged in static budget.

So, Answer =

The activity level variance for fixed costs equals zero when the actual level of output equals the static budget level of output.