Which of the following formulas calculates the total fixed overhead (FOH) variance?
A) Standard Fixed Overhead - Variable Fixed Overhead
B) Actual Fixed Overhead - (Standard Variable Overhead Rate × Standard Hours Allowed)
C) Actual Fixed Overhead - Applied Fixed Overhead
D) Actual Fixed Overhead - (Standard Fixed Overhead × Actual Direct Labor Hours Used)
E) (Total actual overhead - Standard Fixed Overhead) × Standard Hours Allowed

Question

Which of the following formulas calculates the total fixed overhead (FOH) variance? 
A) Standard Fixed Overhead - Variable Fixed Overhead
B) Actual Fixed Overhead - (Standard Variable Overhead Rate × Standard Hours Allowed)
C) Actual Fixed Overhead - Applied Fixed Overhead
D) Actual Fixed Overhead - (Standard Fixed Overhead × Actual Direct Labor Hours Used)
E) (Total actual overhead - Standard Fixed Overhead) × Standard Hours Allowed

Quizplus · Accepted Answer

The formula for total fixed overhead variance is Actual Fixed Overhead - Applied Fixed Overhead. This formula compares the actual amount of fixed overhead incurred to the amount that was applied using the predetermined fixed overhead rate, allowing for an analysis of the efficiency of the fixed overhead application. The other options do not calculate the total fixed overhead variance.

Which of the Following Formulas Calculates the Total Fixed Overhead