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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Georgeanna

1 days ago

Haha, this question is making my head spin! I'm just going to guess and pick A. The variable overhead expenditure variance is the over or under absorbed variable overhead.

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Patti

4 days ago

This question is a bit tricky, but I'm going with C. The variable overhead expenditure variance is the actual hours worked multiplied by the variable absorption rate.

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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.

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Deonna

11 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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Tabetha

17 days ago

But option B makes more sense because it calculates the difference between actual and standard hours.

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King

18 days ago

I disagree, I believe it's option D.

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Tabetha

19 days ago

I think the variable overhead expenditure variance is option B.

upvoted 0 times

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

Contribute your Thoughts:

Georgeanna

Patti

Zona

Deonna

Tabetha

King

Tabetha