The management of Delta Pet Supplies Company has calculated the following variances:
-When determining the total production cost flexible budget variance,what is the fixed overhead cost variance of the company?

Question

The management of Delta Pet Supplies Company has calculated the following variances:  
-When determining the total production cost flexible budget variance,what is the fixed overhead cost variance of the company?

Quizplus · Accepted Answer

The fixed overhead cost variance is the difference between the actual fixed overhead cost and the budgeted fixed overhead cost. In this case, the actual fixed overhead cost is $15,050 and the budgeted fixed overhead cost is $12,000. Therefore, the fixed overhead cost variance is $15,050 - $12,000 = $3,050 F.

The Management of Delta Pet Supplies Company Has Calculated the Following