Manufacturing
Fixed Overhead Budget (Spending) Variance
Recording the difference between actual fixed costs (like factory insurance) and the budgeted amount.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Manufacturing Overhead (Control) | Expense (+) | 2,100.00 | - |
| Fixed OH Budget Variance (Unfavorable) | Expense (+) | 100.00 | - |
| Cash / Accounts Payable | Asset/Liability (-) | - | 2,200.00 |
💡 Accountant's Note
Fixed costs shouldn't change with production volume. If they do (e.g., insurance rates go up), it is captured here.
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