A favorable fixed overhead spending variance indicates that
A)budgeted fixed overhead is less than actual fixed overhead.
B)budgeted fixed overhead is greater than applied fixed overhead.
C)applied fixed overhead is greater than budgeted fixed overhead.
D)actual fixed overhead is less than budgeted fixed overhead.

Question

Quizplus · Accepted Answer

A favorable fixed overhead spending variance occurs when actual fixed overhead is less than budgeted fixed overhead. This means that the company spent less on fixed overhead costs than they had anticipated, which is a positive outcome.

A Favorable Fixed Overhead Spending Variance Indicates That