The fixed overhead spending variance is calculated as the difference between actual overhead costs incurred and the budgeted
A)overhead costs for the standard hours allowed.
B)overhead costs applied to the product.
C)overhead costs at the normal level of activity.
D)fixed overhead costs.

Question

Quizplus · Accepted Answer

The fixed overhead spending variance is calculated as the difference between the actual overhead costs incurred and the budgeted overhead costs for the standard hours allowed. This measures how well the company controlled its fixed overhead costs compared to what was expected (budgeted) for the actual production volume.

The Fixed Overhead Spending Variance Is Calculated as the Difference