Which statement is NOT true about the fixed overhead budget variance?

The statement about the fixed overhead budget variance that is not true is that it is the difference between budgeted fixed overhead and standard fixed overhead allocated to production.

The fixed overhead budget variance actually measures the difference between the actual fixed overhead incurred and the budgeted fixed overhead for the period, rather than comparing budgeted fixed overhead to the standard overhead allocated to production. This measurement focuses on evaluating how well a company managed its fixed overhead costs compared to what was planned in the budget.

In essence, this variance provides insights into spending control and efficiency regarding fixed costs, allowing management to identify areas where they may have overspent or underspent relative to the budget. Understanding this concept is crucial for effective budget management and financial planning.