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Fixed manufacturing overhead budget variance is?

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Fixed manufacturing overhead budget variance is?

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Fixed overhead budgeted variance is the difference between estimated budgeted cost and actual fixed overhead cost of production.

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volume variance relates to Fixed cost absorption, where as controllable variances arise due difference in actual variable spending per activity measure.

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Incurring higher fixed costs than were planned for in the budget can cause adverse overhead capacity variance. Other caused can include planning errors, inefficient management of fixed overheads, and business expansion that was not added to the budget.

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Favourable fixed overhead variance occurs when actual fixed cost is less than the budgeted fixed overhead expenses.

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