Which of the Following Is Used to Calculate the Fixed

question 79

Multiple Choice

Which of the following is used to calculate the fixed overhead spending variance?

• A) (Budgeted Fixed Overhead - Standard Fixed Overhead Rate) × Actual Hours
• B) (Actual Fixed Overhead - Standard Fixed Overhead) × Actual Hours
• C) Budgeted Fixed Overhead - Variable Overhead
• D) Actual Fixed Overhead - Budgeted Fixed Overhead
• E) None of these

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Definitions:

Cost Of Goods Manufactured

The total expense incurred to produce goods within a specific period, including labor, material, and overhead costs.

Manufacturing Overhead

All the indirect costs associated with the production process, including facility maintenance, utilities, and salaries of non-direct labor.

Administrative Expenses

Costs related to the general operation of a business, including salaries of non-production staff, office supplies, and legal fees.

Variable Period Cost

Costs that vary with the level of production output or sales and are incurred during a specific accounting period, like direct materials and variable manufacturing overhead.