The fixed manufacturing overhead budget variance equals:

A) Actual fixed manufacturing overhead cost ? Applied fixed manufacturing overhead cost.
B) Actual fixed manufacturing overhead cost ? Budgeted fixed manufacturing overhead cost.
C) Budgeted fixed manufacturing overhead cost ? Applied fixed manufacturing overhead cost.
D) Actual fixed manufacturing overhead cost ? (Actual hours × Standard fixed manufacturing overhead rate) .

Fixed Manufacturing Overhead

Costs related to production that do not vary with the level of output, including salaries of permanent staff and rent of factory premises.

Budget Variance

The difference between the actual fixed overhead costs and the budgeted fixed overhead costs for the period.

Applied

Refers to the process of allocating or assigning costs to a specific cost object in a manner that is consistent with the usage or benefits derived from it.