Which variance reflects the difference between actual and budgeted fixed overhead?

The variance that reflects the difference between actual and budgeted fixed overhead is the fixed overhead budget variance. This variance specifically measures how much of the fixed overhead costs were expected (as per the budget) versus how much was actually incurred during the period.

When businesses create a budget for fixed overhead, they estimate the costs they will incur based on factors like rents, salaries, and other fixed expenses. The fixed overhead budget variance arises when the actual fixed overhead costs deviate from this budgeted amount. If the actual costs are greater than budgeted, the variance is unfavorable, whereas if the actual costs are less, it is favorable. This provides management with valuable insights into how well fixed costs are being controlled and managed.

Other options, such as mixed overhead volume variance, direct material quantity variance, and variable overhead rate variance, pertain to different types of costs and measurements. Mixed overhead volume variance assesses discrepancies between actual usage and budgeted output, while direct material quantity variance focuses on the efficiency of material usage. The variable overhead rate variance measures the differences in variable overhead rates applied versus actual costs. These do not address fixed overhead costs specifically, making the fixed overhead budget variance the correct choice for assessing the difference between actual and budgeted fixed overhead.