Chapter 11, Problem 8QC

(Learning Objective 6) Which of the following is not true about the fixed overhead budget variance?

1. a. It is the difference between actual fixed overhead and budgeted fixed overhead.
2. b. It is the difference between the budgeted fixed overhead and the standard fixed overhead allocated to production.
3. c. It can be either favorable or unfavorable.
4. d. It is sometimes referred to as the fixed overhead spending variance.