The overhead flexible budget variance is:
A) the difference between the actual total overhead and the total overhead in the static budget.
B) the difference between the actual total overhead and the total overhead in the flexible budget.
C) favorable, if actual production exceeds budgeted production.
D) unfavorable, if actual production exceeds budgeted production.

Question

Quizplus · Accepted Answer

The overhead flexible budget variance is calculated by comparing the actual total overhead costs incurred to the total overhead costs in the flexible budget, which adjusts for the actual level of activity or production volume.

The Overhead Flexible Budget Variance Is