QUESTION 5

1. If the fixed overhead budget (price) variance is favorable, that means

   	A.	The fixed overhead resource is over-utilized.
   	B.	The actual cost is lower than the standard cost/flexible budget (the amount that should have been budgeted, given the actual output level).
   	C.	The original fixed overhead budget amount is lower than the standard cost/flexible budget (the amount that should have been budgeted, given the actual output level).
   	D.	The actual cost is lower than the original budget.