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

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

Question #: 96
Topic #: 2

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?

A$650 adverse

B$650 favourable

C$200 adverse

D$200 favourable

Show Suggested Answer

Suggested Answer: A

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

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Rocco

11 days 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

13 days 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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