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.
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 budgeted total cost in fixed overhead is $465200 and the budgeted total quantity is $8750, then budgeted fixed overhead cost per unit will be ____________?
If the fixed overhead allocated for actual output unit is $9800 and budgeted fixed overhead is $22000, then production volume variance would be _________?
The third step in developing operating budget is to __________?
In overhead cost variance analysis, the variable overhead does not include _____________?
An indirect setup labor costs, costs of setup and equipment maintenance and costs of indirect material can be categorized as ______________?
The costing technique, which classify all the activities in costing hierarchy is classified as ____________?