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  1. avatar says

    In relation to the controversy on the variation of the fixed overheads as against the fixed budgeted which we know it ought not to change as a fixed overheads, the can I say it is a semi-fixed overheads and not fixed overheads? since the unit cost is fixed ($3000/200units=$15) but the total cost changed?

    Thus in the short run it was fixed cost in nature (budgeted) but in the long run fixed costs normally becomes semi-fixed

  2. avatar says

    Hi,

    Can you please explain this question??
    A company has recorded the following variances for a period:
    $ Sales volume variance – 10,000 – adverse
    Sales price variance – 5,000 – favourable
    Total cost variance – 12,000 – adverse
    Standard profit on actual sales for the period was $120,000.

    What was the fixed budget profit for the period?

    $130,000

    $137,000

    $103,000

    $110,000

    Thanks :-)

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