Fixed Overhead Expenditure Formula

Fixed Overhead Expenditure Formula

Fixed overhead expenditure is difference between budgeted fixed overhead expenditure and actual fixed overhead expenditure. This variance can be expressed as under

Fixed overhead Expenditure = Budgeted FOH – Actual FOH

Example

Budgeted Expenditure = 40,000

Actual Expenditure = 45,000

Solution

Fixed overhead Expenditure = Budgeted FOH – Actual FOH

=40,000-45000

=5000