Asked by Clayton Scheutzow on Jul 05, 2024
Verified
The fixed overhead budget variance is:
A) $20,000 U
B) $400 U
C) $20,000 F
D) $400 F
Fixed Overhead Budget Variance
The variance between the budgeted and the actual incurred fixed overhead expenses.
- Compute and elucidate variances related to fixed and variable overheads, such as budget variances, volume variances, and efficiency variances.
Verified Answer
JB
Joseph BrierJul 10, 2024
Final Answer :
A
Explanation :
Budget variance = Actual fixed overhead - Budgeted fixed overhead
= $363,000 - $343,000 = $20,000 U
= $363,000 - $343,000 = $20,000 U
Learning Objectives
- Compute and elucidate variances related to fixed and variable overheads, such as budget variances, volume variances, and efficiency variances.