A. The variance is unfavorable. This answer results from subtracting actual fixed overhead incurred from budgeted fixed overhead instead of the reverse. See the correct answer for a complete explanation.

B. The fixed overhead spending variance is the actual fixed overhead incurred minus the budgeted fixed overhead costs. Actual fixed overhead costs are $618,000 ($9,738,000 total cost incurred - $9,120,000 flexible (variable) costs). The budgeted fixed overhead costs are $600,000. The fixed overhead spending variance is $18,000 unfavorable ($618,000 actual fixed costs - $600,000 budgeted fixed costs). The actual costs exceed the budgeted costs, so the variance is unfavorable.

C. The fixed overhead spending variance is the actual fixed overhead incurred minus the budgeted fixed overhead costs. This incorrect result is the consequence of the wrong assumption that the budgeted amount of fixed overhead should be adjusted to the level of production the way variable costs are in the flexible budget. In the calculation, we have to use $600,000 of budgeted fixed costs, not $570,000 adjusted for the level of production of 9,500 articles. Again, fixed costs do not vary with the level of output.

D. The variance is unfavorable. See the correct answer for a complete explanation.