A favorable fixed overhead spending variance might indicate that:
A)more capacity was used than planned
B)the denominator level was less than planned
C)the fixed overhead cost-allocation base was not used efficiently
D)a plant expansion did not proceed as originally planned

Question

Quizplus · Accepted Answer

A favorable fixed overhead spending variance suggests that actual fixed overhead costs were less than budgeted, which could occur if a planned plant expansion did not proceed, thus avoiding additional fixed costs.

A Favorable Fixed Overhead Spending Variance Might Indicate That