Underfoot Products uses standard costing.The following information about overhead was generated during May:
-Compute the fixed overhead variance.
A)$5,000 (
B)$5,000 (
C)$10,000 (
D)$10,000 (

Question

Underfoot Products uses standard costing.The following information about overhead was generated during May:  
-Compute the fixed overhead variance.
A)$5,000 (
B)$5,000 (
C)$10,000 (
D)$10,000 (

Quizplus · Accepted Answer

Fixed overhead variance is calculated as the difference between the budgeted fixed overhead and the actual fixed overhead. A favorable (F) variance occurs when the actual expenses are less than the budgeted or standard costs. Without specific numbers for the budgeted and actual fixed overhead, we cannot calculate the exact variance, but option A indicates a favorable variance, suggesting that the actual fixed overhead was $5,000 less than budgeted.

Underfoot Products Uses Standard Costing