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CIMAPRA17-BA2-1 Exam - Topic 2 Question 96 Discussion

Actual exam question for CIMA's CIMAPRA17-BA2-1 exam
Question #: 96
Topic #: 2
[All CIMAPRA17-BA2-1 Questions]

Refer to the exhibit.

SP, a manufacturing company, uses a standard costing system. The standard variable production overhead cost is based on the following budgeted figures for the year:

During the month of September, 5,300 actual hours were worked and 5,600 standard hours of output were produced. Total variable production overhead costs in September were $8,600.

What was the variable production overhead expenditure variance in September?

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Suggested Answer: A

by Shonda at Jul 07, 2025, 08:13 AM

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Graciela
4 months ago
Are we sure about those budgeted figures? Seems off.
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Naomi
4 months ago
I think the variance is $650 adverse.
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Fatima
5 months ago
No way, it should be $200 favorable!
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Penney
5 months ago
Wait, how did they end up with a favorable variance?
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Mozell
5 months ago
The actual hours worked were 5,300.
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Inocencia
5 months ago
I believe the answer should be based on the difference between actual and budgeted rates, but I can't recall the exact figures we used in practice.
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Rikki
6 months ago
Wait, does the standard hours produced affect the variance calculation? I feel like I might be mixing up the concepts.
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Trinidad
6 months ago
I think the variable production overhead expenditure variance is calculated by comparing actual costs to standard costs based on actual hours worked.
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Frederica
6 months ago
I remember we practiced a similar question about variable overhead variances, but I'm not sure how to calculate the expenditure variance specifically.
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Kanisha
6 months ago
Ugh, I'm not feeling too confident about this one. Variable overhead variances always trip me up. I'll have to review the material and try some practice questions before the exam.
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Florinda
6 months ago
Okay, let me think this through step-by-step. I need to calculate the variable overhead rate, then use that to find the expected variable overhead for the standard hours, and compare that to the actual variable overhead. I've got this!
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Osvaldo
7 months ago
Hmm, I'm a bit unsure about this one. I need to make sure I understand the difference between standard hours and actual hours, and how that factors into the variable overhead variance.
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Clare
7 months ago
This looks like a standard variable overhead variance calculation, so I should be able to handle this. I just need to remember the formula and plug in the numbers.
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Lou
9 months ago
I believe the answer is D) $200 favourable, as the actual costs were lower than expected.
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Yuki
9 months ago
I agree with Regenia, because the actual costs were lower than the standard costs.
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Lorean
9 months ago
Ah, the joys of standard costing systems. Where the budgets are made up and the variances don't matter... or do they? This one's got my accounting senses tingling. Time to channel my inner bean counter and crack this case wide open.
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Kanisha
9 months ago
B) $650 favourable
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Cherry
9 months ago
A) $650 adverse
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Regenia
9 months ago
I think the answer is B) $650 favourable.
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Justine
9 months ago
Variable production overhead, huh? Sounds like a fancy way of saying 'the stuff that costs money but isn't directly related to the product.' Alright, let's see if I can figure this out before my brain starts to hurt. *cracks knuckles* Time to get my nerd on.
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Tammi
9 months ago
B) $650 favourable
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Gene
9 months ago
A) $650 adverse
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Rocco
10 months ago
Ooh, this one's got some numbers to play with. I bet the answer's in the variable production overhead costs. Gotta love a good ol' variance analysis, am I right? Let's see if I can outsmart the test-makers on this one.
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Inocencia
10 months ago
Hmm, let's see. The variable production overhead cost is based on the budgeted figures, and we have the actual hours worked and the standard hours of output. I think the key is to find the difference between the actual and budgeted variable overhead costs. Time to put on my accounting hat and crunch some numbers!
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Tresa
9 months ago
That makes sense, the difference between actual and budgeted costs resulted in an adverse variance.
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Lashaunda
9 months ago
Hmm, it looks like the variable production overhead expenditure variance in September was $650 adverse.
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Shonda
9 months ago
A) $650 adverse
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