Use of Variances Notes Questions with Answers PDF Download – Test 139

MCQ 691: If an actual result is $50000 and the static budget variance is $25000, then the static budget amount will be:

1. $75,000
2. $25,000
3. $35,000
4. $45,000

MCQ 692: If the margin of safety is $25000 and the budgeted revenue is $45000, then the margin of safety in percentage will be:

1. 55.56%
2. 25.50%
3. 28%
4. 45.00%

MCQ 693: Of the cost allocation base, the difference between actual and budgeted variable overhead cost multiplied by actual quantity for actual output is classified as:

1. variable overhead spending variance
2. fixed overhead spending variance
3. constant spending variance
4. potential spending variance

MCQ 694: If the actual price input is $500, the budgeted price of input is $300 and the actual quantity of input is 50 units, then the price variance would be:

1. $4,000
2. $6,000
3. $8,000
4. $10,000

MCQ 695: If an actual result is $250000 and the static budget amount is $150000, then the static budget variance for operating income will be:

1. $400,000
2. $500,000
3. $100,000
4. $600,000