Which of the following would cause an adverse fixed overhead volume variance?

A healthcare company specializes in hip, knee and shoulder replacement operations, known as surgical procedures. As well as providing these surgical procedures the company offers pre operation and post operation in-patient care, in a fully equipped hospital, for those patients who will be undergoing the surgical procedures.
Surgeons are paid a fixed fee for each surgical procedure they perform and an additional amount for any follow-up consultations. Post procedure follow-up consultations are only undertaken if there are any complications in relation to the surgical procedure. There is no additional fee charged to patients for any follow up consultations. All other staff are paid annual salaries.
The company's existing costing system uses a single overhead rate, based on revenue, to charge the costs of support activities to the procedures. Concern has been raised about the inaccuracy of procedure costs and the company's accountant has initiated a project to implement an activity-based costing (ABC) system. The project team has collected the following data on each of the procedures.

Calculate the profit per procedure for each of the three procedures using activity-based costing.
What was the profit for the knee procedure, using ABC costing?

The following extract from a decision tree has been prepared for a decision that is to be made to choose between options P, Q and R.

What is the maximum expected value of profit at decision point Z?

Which of the following explain why standard costing is less appropriate in the contemporary business environment?
1. In a continuous improvement environment standard costing can restrict the impetus to remain as cost competitive as rivals.
2. Fixed overhead variances are less relevant as fixed costs represent a decreasing proportion of total manufacturing cost.
3. In a just-in-time environment there are fewer costs to control.

The fixed production overhead volume variance is: