Suppose a company had actual fixed overhead of $99,500,a $3,100 favourable spending variance,and a $700 unfavourable volume variance.What would be the budgeted fixed overhead?
A)$96,400
B)$99,700
C)$100,680
D)$102,600

Question

Quizplus · Accepted Answer

The budgeted fixed overhead is calculated by adding the favourable spending variance to the actual fixed overhead and then subtracting the unfavourable volume variance: $99,500 + $3,100 - $700 = $101,900. However, this calculation seems incorrect as it doesn't match any option. The correct calculation should be $99,500 + $3,100 = $102,600, which matches option D.

Suppose a Company Had Actual Fixed Overhead of $99,500,a $3,100