The fixed overhead volume spending variance = budgeted fixed overhead

Question

The fixed overhead volume spending variance = budgeted fixed overhead - applied fixed overhead.

Quizplus · Accepted Answer

The fixed overhead volume spending variance is calculated by comparing the budgeted fixed overhead to the applied fixed overhead. If the applied fixed overhead is less than the budgeted fixed overhead, then the variance is unfavorable. If the applied fixed overhead is greater than the budgeted fixed overhead, then the variance is favorable.