New Hampshire Products has a favorable fixed overhead spending variance. Which of the following would be the most likely reason for this variance?
A) More units were actually produced than predicted.
B) Fewer units were actually produced than predicted.
C) Actual fixed overhead was more than predicted.
D) Actual fixed overhead was less than predicted.

Question

Quizplus · Accepted Answer

A favorable fixed overhead spending variance means that actual fixed overhead was less than predicted.

New Hampshire Products Has a Favorable Fixed Overhead Spending Variance