Davidson Corporation manufactured 53,400 units during September.The following fixed overhead data relates to September:
$\begin{array}{lll}& \text { Actual } & \text { Static Buidget } \
\text { Production } & 53,400 \text { units } & 53,000 \text { units } \
\text { Machine-hours } & 1,960 \text { hours } & 2,120 \text { hours } \
\text { Fixed overhead costs for September } & \$ 86,520 & \$ 86,920
\end{array}$
What is the fixed overhead spending variance?

Question

Quizplus · Accepted Answer

The fixed overhead spending variance is calculated as the difference between the actual fixed overhead costs and the budgeted fixed overhead costs. Here, it is $86,520 (actual) - $86,920 (budgeted) = -$400, which is favorable because the actual costs are less than the budgeted costs.

Davidson Corporation Manufactured 53,400 Units During September What Is the Fixed Overhead Spending Variance? A)$1,056 Unfavorable B)$400

Davidson Corporation Manufactured 53,400 Units During September What Is the Fixed Overhead Spending Variance?
A)$1,056 Unfavorable
B)$400