A favorable fixed overhead spending variance indicates that
A)budgeted fixed overhead is less than actual fixed overhead.
B)budgeted fixed overhead is greater than applied fixed overhead.
C)applied fixed overhead is greater than budgeted fixed overhead.
D)actual fixed overhead is less than budgeted fixed overheaD.

Question

Quizplus · Accepted Answer

A favorable fixed overhead spending variance means that actual fixed overhead costs are less than the budgeted fixed overhead costs. This indicates that cost-saving measures were taken or production was more efficient than anticipated, resulting in lower than expected overhead costs.

A Favorable Fixed Overhead Spending Variance Indicates That