Fixed production costs variances are calculated as
A)the difference between actual and budgeted fixed costs.
B)(actual hours ´ standard inputs)- budgeted fixed costs.
C)(actual hours ´ standard outputs)- budgeted fixed costs.
D)(actual hours ´ standard outputs)- actual fixed costs.

Question

Quizplus · Accepted Answer

Fixed production costs variances are calculated as the difference between actual and budgeted fixed costs. This variance helps managers understand whether they have spent more or less than expected on fixed costs such as rent, salaries, and other overhead expenses related to production.

Fixed Production Costs Variances Are Calculated as