The fixed overhead spending variance measures:
A) The difference between what was spent and what was expected to be spent on fixed overhead
B) The fixed overhead rate this period compared to the rate last period
C) The difference between the labour hours used to allocate fixed costs and actual labour hours used
D) The difference between actual and expected utilities costs

Question

Quizplus · Accepted Answer

The fixed overhead spending variance measures the difference between what was actually spent on fixed overhead and what was expected to be spent. This variance helps to identify if there were any unexpected fluctuations in fixed overhead expenses, which can help managers to make necessary adjustments to their budgets and spending in the future.

The Fixed Overhead Spending Variance Measures