The fixed overhead spending variance of New York manufacturing company is unfavorable because the actual fixed overhead is higher than the budgeted fixed overhead for the period. Fixed overhead spending variance (also known as the difference between the actual fixed overhead and the planned fixed overhead is called the fixed overhead budget variance and fixed overhead expenditure variance) is the difference between the actual fixed manufacturing overhead and the budgeted fixed manufacturing overhead for a period. However, the company had to make some addition investment in overhead resources and the actual expenses for the period were therefore higher than expected at $375,000. Fixed overhead spending variance is an important variance for management because it indicates the cost deviations that were not expected at the time of setting standards and budgets.
