Answer the Following Questions Using the Information Below:
Skizone Company's

Multiple Choice

Answer the following questions using the information below:
Skizone Company's 4-Variance Analysis:
$$\begin{array} { | l | l | l | l | } \hline & & & \text { Production-Volume } \\ & \text { Spending Variance } & \text { Efficiency Variance } & \text { Variance } \\\hline \text { Variable overhead } & \$ 6,500 \mathrm {~F} & \$ 12,000 \mathrm { U } & \text { No variance } \\\hline \text { Fixed overhead } & \text { (a) } & \text { No variance } & \$ 46,000 \mathrm { U } \\\hline\end{array}$$
-Which of the following statements is true of Skizone's overhead variances?

A) Budgeted variable overhead rate is higher than actual variable overhead rate.
B) Static fixed overhead amount is higher than flexible fixed overhead amount.
C) Budgeted variable overhead rate is lower than actual variable overhead rate.
D) Static fixed overhead amount is lower than flexible fixed overhead amount.