Wendel Company has actual fixed overhead costs of $14,700.Fixed overhead costs based on the flexible budget and the actual use of the cost driver are $14,400.Actual variable overhead costs are $14,500.What is the flexible-budget variance for fixed overhead costs?
A) $300 Favorable
B) $300 Unfavorable
C) $100 Favorable
D) $100 Unfavorable

Question

Quizplus · Accepted Answer

The flexible-budget variance for fixed overhead costs is calculated as the difference between actual fixed overhead costs and fixed overhead costs based on the flexible budget and the actual use of the cost driver. 
Flexible-budget variance for fixed overhead costs = Actual fixed overhead costs - Fixed overhead costs based on flexible budget and actual use of cost driver 
= $14,700 - $14,400 
= $300 unfavorable.

Wendel Company Has Actual Fixed Overhead Costs of $14,700