If the actual amount spent for fixed manufacturing overhead is greater than the budgeted amount, the result is:

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Quizplus · Accepted Answer

If the actual amount spent for fixed manufacturing overhead is greater than the budgeted amount, it means that the actual overhead cost is higher than the planned cost. This results in an unfavorable fixed overhead budget variance, as the actual expenditure does not align with the budgeted amount. A favorable fixed overhead budget variance would occur if the actual amount spent was less than the budgeted amount. The volume variance is related to the difference between the actual and budgeted production volume, and is not affected by the actual fixed overhead costs incurred.

If the Actual Amount Spent for Fixed Manufacturing Overhead Is