If the variable overhead flexible budget variance is $37000 and the flexible budget amount is $10000, then the actual incurred costs would be ____________?
Correct answer: C. $47,000
- A. $27,000
- B. $25,000
- C. $47,000
- D. $57,000
Explanation
The variable overhead flexible-budget variance equals actual incurred cost minus flexible-budget cost. Thus, actual cost is $10,000 + $37,000 = $47,000, assuming the stated variance is unfavorable.
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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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