Fixed production overhead expenditure variance

Fixed production overhead expenditure variance,

Definition of Fixed production overhead expenditure variance:

  1. The difference between the actual fixed production overhead expenditure and the budgeted fixed production overhead expenditure. For example, if a company budgeted overhead costs of $20,000 (1,000 units x overhead rate of $20/unit) but found actual overhead expenditures to be $25,000, there was a favorable fixed production overhead expenditure variance of $5,000.

Meaning of Fixed production overhead expenditure variance & Fixed production overhead expenditure variance Definition