Washington Inc.has an unfavourable 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

An unfavourable fixed overhead spending variance means that the actual fixed overhead costs incurred were higher than the predicted or budgeted fixed overhead costs. Therefore, the most likely reason for this variance is that actual fixed overhead was more than predicted.