An unfavorable fixed overhead spending variance indicates that ________.
A) there was more excess capacity than planned
B) the price of fixed overhead items cost more than budgeted
C) the fixed overhead cost-allocation base was not used efficiently
D) the denominator level was more than planned

Question

Quizplus · Accepted Answer

An unfavorable fixed overhead spending variance occurs when the actual fixed overhead costs are higher than the budgeted or standard fixed overhead costs. This can happen if the price of items that contribute to fixed overhead costs more than was budgeted for.

An Unfavorable Fixed Overhead Spending Variance Indicates That ________