Fixed Overhead Cost Variances Multiple Choice Questions with Answers – PDF Download

MCQ 1: If an actual cost incurred is $627500, the flexible budget amount is $358750, then fixed overhead variance of flexible-budget will be:

1. $218,750
2. $238,750
3. $258,750
4. $268,750

MCQ 2: The lower plant leasing, lower administrative costs, lower depreciation on equipment and plant are all the factors of:

1. favorable price variance
2. unfavorable price variance
3. favorable spending variance
4. unfavorable spending variance

MCQ 3: The higher plant leasing, higher administrative costs and higher depreciation on equipment and plants are all the factors of:

1. favorable spending variance
2. unfavorable spending variance
3. favorable price variance
4. unfavorable price variance

MCQ 4: If an actual incurred cost is $387500 and the flexible budget amount is $168750, then fixed overhead variance of flexible budget would be:

1. $518,750
2. $418,750
3. $218,750
4. $318,750

MCQ 5: If the flexible budget amount is $21500 and fixed overhead flexible budget variance is $10000, then actual incurred cost will be:

1. $61,500
2. $31,500
3. $41,500
4. $51,500