Fixed overhead budget variance
Revision as of 10:56, 15 July 2020 by EshwaN (talk | contribs) (Created page with "Fixed overhead budget variance this variance measures the difference between the actual fixed overhead costs incurred and the budgeted fixed overhead costs. This variance...")
Fixed overhead budget variance this variance measures the difference between the actual fixed overhead costs incurred and the budgeted fixed overhead costs. This variance is sometimes referred to as the fixed overhead spending variance because it specifically looks at whether the company spent more or less than anticipated on fixed overhead costs.
Definitions
According to Managerial Accounting by Braun, Tietz (5th edition),
- Fixed overhead budget variance. This variance measures the difference between the actual fixed overhead costs incurred and the budgeted fixed overhead costs. This variance is sometimes referred to as the fixed overhead spending variance because it specifically looks at whether the company spent more or less than anticipated on fixed overhead costs.
