CIMAPRA17-BA2-1 Exam - Topic 1 Question 2 Discussion

Actual exam question for CIMA's CIMAPRA17-BA2-1 exam

Question #: 2
Topic #: 1

[All CIMAPRA17-BA2-1 Questions]

Refer to the Exhibit.

AM Ltd. makes and sells a single product for which the standard cost information is as follows:

Budgeted production for the period is 30000 units.

The actual results for the period were as follows:

What is the variable overhead expenditure variance?

A13,161 adverse

B13,161 favourable

C13,600 adverse

D13,600 favourable

Show Suggested Answer

Suggested Answer: D

by Lashon at May 07, 2022, 01:11 PM

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Cordell

10 months ago

Totally with you, 13,161 adverse makes sense!

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Dalene

10 months ago

Wait, how can it be favorable when costs went up?

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Leatha

11 months ago

Definitely not, I believe it's 13,600 adverse.

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Vivienne

11 months ago

I think the variable overhead expenditure variance is 13,161 adverse.

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Lynelle

11 months ago

The budgeted production was 30,000 units.

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Mike

11 months ago

Limiting email use might be a bit extreme, but deleting emails periodically could be a simpler way to stay compliant.

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Katina

11 months ago

Ah, I remember discussing this in class. I believe the purpose is to assess generalization, so I'll go with option C.

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