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Management · Q198

Management Accounting

Graduate and Post Graduate · Management · question 198

Q198

If flexible budget amount is 40000 and variable overhead flexible budget variance is 25000, then actual costs incur will be

A.
$15,000
B.
$35,000
C.
$65,000
Answer
D.
$75,000

Answer: Option C

Solution

Answer: Option C
Solution:
Actual costs = Flexible budget amount + Variable overhead flexible budget variance
= 25000 = $65,000.