Dill has a fixed overhead spending variance of $3,900 unfavorable.During July,4,500 units were budgeted to be produced,4,700 units were actually produced,and $71,400 was actually spent on fixed overhead.How much was budgeted fixed overhead?
A)$67,500
B)$68,362
C)$71,400
D)$75,300

Question

Quizplus · Accepted Answer

The fixed overhead spending variance is the difference between the actual fixed overhead and the budgeted fixed overhead. Given that the variance is $3,900 unfavorable, and $71,400 was actually spent, the budgeted fixed overhead must have been $71,400 - $3,900 = $67,500.

Dill Has a Fixed Overhead Spending Variance of $3,900 Unfavorable