The difference between the actual fixed manufacturing overhead cost and the budgeted fixed manufacturing overhead cost is the:
A)fixed overhead spending variance.
B)fixed overhead volume variance.
C)fixed overhead rate variance.
D)fixed overhead efficiency variance.

Question

Quizplus · Accepted Answer

The fixed overhead spending variance measures the difference between the actual fixed overhead cost incurred and the budgeted fixed overhead cost at the actual level of production. Therefore, the difference between the actual fixed manufacturing overhead cost and the budgeted fixed manufacturing overhead cost is the fixed overhead spending variance.

The Difference Between the Actual Fixed Manufacturing Overhead Cost and the Budgeted