Because Fixed Overhead Does Not Vary with Changes in the Level

question 36

Essay

Because fixed overhead does not vary with changes in the level of activity, some managers do not see a need to investigate variances relating to fixed costs.However, that is not the case.
a.How is the fixed overhead spending variance calculated?
b.Discuss items that generally do not affect the fixed overhead variance and those that might affect the fixed overhead variances.

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Definitions:

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