If the variable overhead flexible budget variance is $26000 and the flexible budget amount is $15000, then the actual incurred costs will be ________?
Correct answer: D. $41,000
- A. $21,000
- B. $11,000
- C. $31,000
- D. $41,000
Explanation
Flexible-budget variance equals actual incurred cost minus flexible-budget cost. Thus, actual cost is $15,000 + $26,000 = $41,000, assuming the stated variance is unfavorable.
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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.
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