Suppose a company had actual fixed overhead of $60,000, a $1,500 unfavourable spending variance, and a $1,000 unfavourable volume variance. What was the budgeted fixed overhead?
A) $50,300
B) $52,700
C) $53,000
D) $58,500

Question

Quizplus · Accepted Answer

The budgeted fixed overhead can be calculated by subtracting the spending variance from the actual fixed overhead: $60,000 - $1,500 = $58,500. The volume variance does not affect the budgeted fixed overhead calculation.

Suppose a Company Had Actual Fixed Overhead of $60,000, a $1,500