Asked by stephan vailes on Jun 11, 2024
Verified
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.
- Determine the effect of real versus budgeted fixed manufacturing overhead expenses on the allocation of costs.
Verified Answer
Learning Objectives
- Determine the effect of real versus budgeted fixed manufacturing overhead expenses on the allocation of costs.
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