In a standard costing system, if the actual fixed manufacturing overhead cost exceeds the budgeted fixed manufacturing overhead cost for the period, then fixed manufacturing overhead cost would be overapplied for the period.

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If the actual fixed manufacturing overhead cost exceeds the budgeted fixed manufacturing overhead cost for the period, then fixed manufacturing overhead cost would be underapplied for the period. This is because the company budgeted for a certain amount of fixed overhead costs, but ended up incurring more than that amount, resulting in a deficit or underapplication.

In a Standard Costing System, If the Actual Fixed Manufacturing