Total fixed overhead budget variance is always equal to
A) fixed overhead volume variance.
B) fixed overhead volume variance plus fixed overhead spending variance.
C) total variable overhead budget variance plus fixed overhead spending variance.
D) total variable overhead budget variance.

Question

Quizplus · Accepted Answer

Total fixed overhead budget variance is the difference between the actual fixed overhead costs and the budgeted fixed overhead costs. It can be further analyzed as fixed overhead volume variance and fixed overhead spending variance. Therefore, the total fixed overhead budget variance is always equal to the sum of the fixed overhead volume variance and fixed overhead spending variance.

Total Fixed Overhead Budget Variance Is Always Equal to