1. avatar says

    Dear Sir,
    In this chapter, when you are making the operating statements, you divide the fixed overheads variances into expenditure variance, capacity variance and efficiency variance. Now when I review this lecture again, I could get the capacity variance $1800(F). Can you help me?
    Thank you very much for your help in advance !!!

  2. 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

  3. avatar says


    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?





    Thanks :-)

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