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CIMA Exam CIMAPRA17-BA2-1 Topic 2 Question 84 Discussion

Actual exam question for CIMA's CIMAPRA17-BA2-1 exam
Question #: 84
Topic #: 2
[All CIMAPRA17-BA2-1 Questions]

Data for the latest period for a company which makes and sells a single product are as follows:

There were no budgeted or actual changes in inventories during the period.

The variable overhead expenditure variance for the period was:

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Suggested Answer: B

by Tammara at Sep 18, 2024, 11:02 PM

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Myra
9 months ago
I'm not sure, but I think the answer might be D) $2,202 adverse.
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Garry
9 months ago
Option D is the way to go. $2,202 adverse variance? That's not what the boss wants to see. Time to tighten the purse strings.
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Maia
8 months ago
Let's work on a plan to reduce the overhead costs and improve our performance next period.
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Bulah
8 months ago
Maybe we need to review our overhead costs and see where we can make cuts.
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Isabelle
8 months ago
Agreed, we should investigate the reasons behind such a large adverse variance.
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Valentin
9 months ago
Option D is definitely not good news. We need to figure out what went wrong.
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Theodora
9 months ago
I agree with Lon, because the variable overhead expenditure was lower than expected.
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Lucina
9 months ago
I'm going with option C. $2,202 favourable sounds like a win to me. Maybe they can use that to buy the accounting team a pizza party.
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Joseph
8 months ago
Definitely! It's always good to have a favourable variance in overhead expenditure.
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Dalene
9 months ago
Yeah, that sounds like a win for the company. A pizza party for the accounting team would be a nice way to celebrate.
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Selma
9 months ago
I think option C is the correct answer. $2,202 favourable is a good variance.
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Rosita
10 months ago
Hmm, looks like we need to dig into those overhead costs. This variable overhead variance could make or break the bottom line.
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Jolene
9 months ago
That's good news, it means we were able to control our variable overhead costs effectively.
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Mignon
9 months ago
I think the variance is $462 favourable.
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Tayna
9 months ago
I agree, it could have a significant impact on our financial performance.
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Dalene
9 months ago
We should definitely investigate the variable overhead expenditure variance.
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Lon
10 months ago
I think the answer is C) $2,202 favourable.
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