The fixed overhead spending variance can be caused by an increase in the activity level to a new relevant range.

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The fixed overhead spending variance is caused by a difference between the actual fixed overhead costs and the budgeted fixed overhead costs. An increase in the activity level to a new relevant range can cause the actual fixed overhead costs to be higher than the budgeted fixed overhead costs, resulting in an unfavorable fixed overhead spending variance.

The Fixed Overhead Spending Variance Can Be Caused by an Increase