Actual overhead is $700,000, while budgeted overhead is $598,000.What is the fixed overhead static-budget variance if 250,000 units are produced and 225,000 are budgeted?
A)$80,000 favourable
B)$100,000 unfavourable
C)$100,000 favourable
D)$102,000 unfavourable
E)$102,000 favourable

Question

Quizplus · Accepted Answer

Fixed Overhead Static Budget Variance = Budgeted Fixed Overhead - Actual Fixed Overhead
= $598,000 - $700,000
= $102,000 unfavorable.

Actual Overhead Is $700,000, While Budgeted Overhead Is $598,000