Good Sleep Inc.manufactures soft pillows.Its records revealed the following data:
-Using the above information provided for Good Sleep,the total fixed overhead variance is
A)$4,500 (
U).
B)$30,500 (
U).
C)$5,000 (
U).
D)$45,000 (

Question

Good Sleep Inc.manufactures soft pillows.Its records revealed the following data:  
-Using the above information provided for Good Sleep,the total fixed overhead variance is
A)$4,500 (
U). 
B)$30,500 (
U). 
C)$5,000 (
U). 
D)$45,000 (

Quizplus · Accepted Answer

The total fixed overhead variance is calculated as the difference between the actual fixed overhead costs and the budgeted fixed overhead costs. The choice C, $5,000 (U), represents this difference as unfavorable (U).