Warner Company has budgeted fixed overhead of $225,000 based on budgeted production of 7,500 units.During October,7,200 units were produced and $236,400 was spent on fixed overhead.What is the fixed overhead spending variance?
A)$11,400 unfavorable
B)$9,000 unfavorable
C)$20,400 unfavorable
D)$20,400 favorable

Question

Quizplus · Accepted Answer

The fixed overhead spending variance is calculated as the actual fixed overhead costs minus the budgeted fixed overhead costs. In this case, it's $236,400 (actual) - $225,000 (budgeted) = $11,400 unfavorable. This means the company spent $11,400 more than it had budgeted for fixed overhead.

Warner Company Has Budgeted Fixed Overhead of $225,000 Based on Budgeted