If fixed overhead allocated for actual output units is $36000 and the production volume variance is $7000, then budgeted fixed overhead will be __________?
Correct answer: A. $43,000
- A. $43,000
- B. $42,000
- C. $29,000
- D. $19,000Government
Explanation
Production volume variance is the difference between budgeted fixed overhead and fixed overhead applied to actual output. Therefore, budgeted fixed overhead is $36,000 + $7,000 = $43,000.
Report an error
The more specific you are, the faster it gets fixed. A source beats an opinion.
Prefer email? support@testustad.com
About Cost Accounting
Cost accounting measures and analyses the cost of producing goods or providing services for planning, control and pricing decisions. It covers direct and indirect costs, fixed and variable costs, job and process costing, break-even analysis, marginal costing, overhead allocation, and the difference between product cost and period cost.
Practise Cost Accounting
941 free Cost Accounting MCQs from Accounting, each with the correct answer and an explanation. Unlimited attempts, no account needed.
Exams that ask Accounting questions like this
Accounting is on 2 papers prepared for on TestUstad, and all of them draw the same bank, so this question is worth knowing for every one of them.
More Cost Accounting questions
If the fixed setup cost is $32000 and the variable setup cost is $12000, then the setup cost will be ___________?
The variable overhead flexible budget variance is added to flexible budget amount to calculate _____________?
If the budgeted total cost in fixed overhead is $385000 and the budgeted total quantity is $6730, then budgeted fixed overhead cost per unit will be __________?
The difference between actual quantity and budgeted quantity of cost allocation base is classified as __________?
The lump sum cost that remains unchanged in total despite of changes in total volume is classified as __________?
The third step in developing operating budget is to __________?