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Denominator hours for May 25,000 Actual hours worked during May 22,000 Standard hours allowed for May...

Denominator hours for May 25,000
Actual hours worked during May 22,000
Standard hours allowed for May 16,000
Flexible budget fixed overhead cost $ 75,000
Actual fixed overhead costs for May $ 80,000

What is the fixed overhead spending (budget) variance for May?

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Answer #1

fixed overhead spending (budget) variance

= Acutal fixed overhead - budgeted fixed overhead

= 80000 - 75000

=$5000

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