The total fixed overhead flexible budget variance is equal to the:
A) Sum of the budget and volume variances for fixed overhead
B) Sum of the spending and quantity variances for fixed overhead
C) Budget variance for fixed overhead
D) Difference between actual fixed overhead and the amount applied to production

Question

Quizplus · Accepted Answer

Both variances, the total fixed overhead flexible budget variance and the fixed overhead budget variance are calculated as the difference between the actual amount of fixed overhead incurred and the lump sum amount planned or budgeted for the period. Hence, the variances are equal to each other.

The Total Fixed Overhead Flexible Budget Variance Is Equal to The