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LO 8.4The fixed factory overhead variance is caused by the difference between which of the following?

actual and standard allocation base
actual and budgeted units
actual fixed overhead and applied fixed overhead
actual and standard overhead rates

Respuesta :

agustinsr99

Answer: The correct answer is "actual fixed overhead and applied fixed overhead".

Explanation: The fixed factory overhead variance is caused by the difference between actual fixed overhead and applied fixed overhead.

There are two types of variations, one is produced because it determines whether too much or too little is spent on fixed overhead; and the other is produced because the real production can be higher or lower than the expected level.

Tundexi

The difference between the actual fixed overhead and applied fixed overhead caused the fixed factory overhead variance.

What is fixed overhead?

The fixed overhead refers to some set of costs that do not vary as a result of changes in activity and are needed in order to operate a business.

However, the difference between the actual fixed overhead and applied fixed overhead result to the fixed factory overhead variance.

Therefore, the Option C is correct.

Read more about fixed overhead

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