Wetzel Company has actual fixed overhead costs of $14,500.Fixed overhead costs based on the flexible budget and the standard use of the cost driver are $14,400.Actual variable overhead costs are $14,700.Flexible budget costs for variable overhead costs are $15,000.What is the flexible-budget variance for fixed overhead costs?
A) $100 Favorable
B) $100 Unfavorable
C) $300 Favorable
D) $300 Unfavorable

Question

Quizplus · Accepted Answer

The flexible-budget variance for fixed overhead costs is calculated as the difference between the actual fixed overhead costs and the flexible budget fixed overhead costs. Here, $14,500 (actual) - $14,400 (flexible budget) = $100 Unfavorable.

Wetzel Company Has Actual Fixed Overhead Costs of $14,500