Question

The fixed setup overhead

flexibleminus−budget

variance is calculated as actual costs

minus−

flexibleminus−budget

variance.

True

False

Answer 1

The Fixed Setup Overhead -  Fixed overhead variance analysis uses your standard costs . The standard overhead and actual overhead, you can determine if you are running over or under budget The fixed overhead volume variance compares how many units you actually produce to how many you should be producing.

A standard overhead cost, also called a rate, is the amount of budgeted overhead expenses for a period. In other words, this is the amount of costs that management anticipates and plans to incur in the next period. ( Flexible Budget )

formula = Actual Cost -  Flexible Budget

So, The statement is true !