Suppose a company had actual fixed overhead of $99,500, a $3,100 favourable spending variance, and a $700 unfavourable volume variance. What was the budgeted fixed overhead?
A) $96,400
B) $99,700
C) $100,680
D) $102,600

Question

Quizplus · Accepted Answer

The budgeted fixed overhead can be calculated by adding the favourable spending variance to the actual fixed overhead: $99,500 + $3,100 = $102,600. The volume variance does not affect the budgeted fixed overhead calculation.

Suppose a Company Had Actual Fixed Overhead of $99,500, a $3,100