What Is the Fixed Overhead Spending (Budget)variance A) $200
B) $400

Multiple Choice

What is the fixed overhead spending (budget) variance? $$\begin{array} { l | r | } \hline \text { Actual machine hours } & 840 \\\hline \text { Standard machine hours allowed } & 900 \\\hline \text { Denominator activity (machine hours) } & 1,000 \\\hline \text { Actual fixed overhead costs } & \$ 3,800 \\\hline \text { Budgeted fixed overhead costs } & \$ 4,000 \\\hline \text { Predetermined overhead rate ( } \$ 1 \text { variable } + \$ 4 & \$ 5 \\\text { fixed) } & \\\hline\end{array}$$

A) $200.
B) $400.
C) $300.
D) $240.