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Answer :
Spending variance, also known as expenditure variance or cost variance, is a measure used in budgeting and variance analysis to assess the difference between the budgeted or expected amount of spending and the actual amount of spending incurred. The correct answer is $150 f.
Actual fixed overhead: $6,150
Budgeted fixed overhead: $6,000
Spending Variance = Actual Fixed Overhead - Budgeted Fixed Overhead
Spending Variance = $6,150 - $6,000 = $150 F (favorable)
The spending variance is $150 F, which means that the actual fixed overhead was $150 less than the budgeted fixed overhead.
In this case, the company spent $150 less than expected on fixed overhead. This could be due to cost-saving measures or efficiencies in the production process. It is a favourable variance because it indicates that the company has saved money on fixed overhead expenses compared to the budgeted amount.
Therefore, the correct answer is $150 F.
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