Which of the following is the correct mathematical expression to calculate the fixed overhead spending variance?
A) Static-budget amount - Flexible-budget amount
B) Actual costs incurred - Flexible-budget amount
C) Static-budget amount - Fixed overhead allocated for actual output
D) Flexible-budget amount - Fixed overhead allocated for actual output

Question

Quizplus · Accepted Answer

The fixed overhead spending variance is calculated by subtracting the flexible-budget amount from the actual costs incurred. This variance shows whether the actual fixed overhead costs were higher or lower than what was expected (flexible budget) for the actual level of production.

Which of the Following Is the Correct Mathematical Expression to Calculate