Since fixed overhead does not vary with volume within the relevant range, the flexible budget amount will always agree with the
A)actual results.
B)static budget.
C)fixed overhead spending variance.
D)fixed overhead efficiency variance.

Question

Quizplus · Accepted Answer

Since fixed overhead does not vary with volume within the relevant range, the flexible budget amount remains the same as the static budget. Therefore, the flexible budget amount will always agree with the static budget. The actual results may differ from both the static and flexible budget amounts due to various factors like changes in prices, volume, or efficiency. The fixed overhead spending variance and fixed overhead efficiency variance are calculated by comparing the actual fixed overhead costs with the budgeted fixed overhead costs, and hence are not related to the flexible budget amount.

Since Fixed Overhead Does Not Vary with Volume Within the Relevant