If Actual Fixed Overhead Was $54,000 and There Was a $1,300

question 44

Multiple Choice

If actual fixed overhead was $54,000 and there was a $1,300 unfavorable spending variance and a $1,000 unfavorable volume variance, budgeted fixed overhead must have been

• A) $56,300.
• B) $50,300.
• C) $53,000.
• D) $52,700.

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Definitions:

Variable Budget

A budget that adjusts to changes in the level of activity, providing a more realistic financial forecast than a static budget.