Hamilton Pty Ltd uses a standard costing system for product costing. The company uses direct labour hours as the cost driver to apply overhead costs. The following amounts were budgeted for the year:
The following were the actual results:
Calculate the amount of fixed overhead budget variance.

Question

Hamilton Pty Ltd uses a standard costing system for product costing. The company uses direct labour hours as the cost driver to apply overhead costs. The following amounts were budgeted for the year: 
The following were the actual results: 
Calculate the amount of fixed overhead budget variance.

Quizplus · Accepted Answer

Fixed Overhead Budget Variance = Actual fixed overhead - Budgeted fixed overhead
= $174,000 - $164,000
= $10,000 unfavourable.

Hamilton Pty Ltd Uses a Standard Costing System for Product