Actual fixed overhead minus budgeted fixed overhead equals the
A)fixed overhead volume variance.
B)fixed overhead spending variance.
C)noncontrollable variance.
D)controllable variance.

Question

Quizplus · Accepted Answer

The formula for calculating the fixed overhead variance is Actual Fixed Overhead - Budgeted Fixed Overhead = Fixed Overhead Variance. The fixed overhead spending variance measures the difference between the actual amount spent on fixed overhead and the budgeted amount for a certain level of production. Therefore, the answer is B.

Actual Fixed Overhead Minus Budgeted Fixed Overhead Equals the