CIMA Exam CIMAPRA17-BA2-1 Topic 1 Question 60 Discussion

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

Question #: 60
Topic #: 1

The variable overhead expenditure variance is:

AThe over or under absorbed variable overhead

BThe difference between the actual hours worked and the standard hours produced, multiplied by the variable overhead absorption rate

CThe actual hours worked multiplied by the variable absorption rate

DThe difference between the variable overheads incurred and the flexed budget allowance for variable overheads

Show Suggested Answer

Suggested Answer: C

by Nieves at Nov 23, 2023, 11:03 PM

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Zona

18 hours ago

I'm torn between B and D, but I think B is the better choice. The variable overhead expenditure variance is the difference between the actual hours worked and the standard hours produced, multiplied by the variable overhead absorption rate.

upvoted 0 times

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Deonna

2 days ago

I think option D is the correct answer. The variable overhead expenditure variance is the difference between the actual variable overheads incurred and the flexed budget allowance for variable overheads.

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