CIMA Exam CIMAPRA17-BA2-1 Topic 2 Question 84 Discussion

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

Question #: 84
Topic #: 2

[All CIMAPRA17-BA2-1 Questions]

Data for the latest period for a company which makes and sells a single product are as follows:

There were no budgeted or actual changes in inventories during the period.

The variable overhead expenditure variance for the period was:

A$462 favourable.

B$462 adverse.

C$2,202 favourable.

D$2,202 adverse.

Show Suggested Answer

Suggested Answer: B

by Tammara at Sep 18, 2024, 11:02 PM

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Myra

5 months ago

I'm not sure, but I think the answer might be D) $2,202 adverse.

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Garry

5 months ago

Option D is the way to go. $2,202 adverse variance? That's not what the boss wants to see. Time to tighten the purse strings.

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Maia

4 months ago

Let's work on a plan to reduce the overhead costs and improve our performance next period.

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Bulah

4 months ago

Maybe we need to review our overhead costs and see where we can make cuts.

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Isabelle

4 months ago

Agreed, we should investigate the reasons behind such a large adverse variance.

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Valentin

4 months ago

Option D is definitely not good news. We need to figure out what went wrong.

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Theodora

5 months ago

I agree with Lon, because the variable overhead expenditure was lower than expected.

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Lucina

5 months ago

I'm going with option C. $2,202 favourable sounds like a win to me. Maybe they can use that to buy the accounting team a pizza party.

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Joseph

4 months ago

Definitely! It's always good to have a favourable variance in overhead expenditure.

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Dalene

4 months ago

Yeah, that sounds like a win for the company. A pizza party for the accounting team would be a nice way to celebrate.

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Selma

4 months ago

I think option C is the correct answer. $2,202 favourable is a good variance.

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Rosita

5 months ago

Hmm, looks like we need to dig into those overhead costs. This variable overhead variance could make or break the bottom line.

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Jolene

4 months ago

That's good news, it means we were able to control our variable overhead costs effectively.

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Mignon

4 months ago

I think the variance is $462 favourable.

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Tayna

5 months ago

I agree, it could have a significant impact on our financial performance.

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Dalene

5 months ago

We should definitely investigate the variable overhead expenditure variance.

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Lon

5 months ago

I think the answer is C) $2,202 favourable.

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