Chapter 8 - Flexible Budgets, Overhead Cost Variances, and Management Control - Assignment Material - Questions - Page 316: 8-9

The flexible-budget variance and the spending variance for fixed manufacturing overhead are the same amount because they both assess the difference between the budgeted fixed overhead costs and the actual fixed overhead costs. Since fixed manufacturing overhead costs remain constant regardless of production levels, the budgeted amount remains the same in both cases, leading to the equality of these two variances.

The flexible-budget variance and the spending variance for fixed manufacturing overhead are the same amount because they both assess the difference between the budgeted fixed overhead costs and the actual fixed overhead costs. Since fixed manufacturing overhead costs remain constant regardless of production levels, the budgeted amount remains the same in both cases, leading to the equality of these two variances.