ACCA MA · Chapter 13 · Question 1 of 10
Budgeted fixed production overheads were $120,000, and actual fixed production overheads were $126,500. What is the fixed overhead expenditure variance?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) $6,500 adverse
Explanation
Fixed overhead expenditure variance = budgeted fixed overhead - actual fixed overhead = 120,000 - 126,500 = $6,500 adverse, because spending was higher than budget.
More Overhead and sales variances and operating statements MCQs
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