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September 21, 2022 at 7:11 pm
Amazing Test Sir ! I Got 100%. No 5 was tricky though. 🙂
John Moffat says
September 22, 2022 at 8:39 am
September 4, 2022 at 7:27 pm
Thank You John, your lectures are indeed fruitful
September 5, 2022 at 9:19 am
Thank you for your comment
June 8, 2020 at 9:37 pm
Could you correct my logic for #5:
Actual fix.o/h = 0.98 Bud.fix o/h, => Bud.fix o/h = 1.02 Actual fix.o/h
So equation is: Actual fix.o/h – 1.02 Actual fix.o/h = 1250 ( suppose here should be minus 1250, because it’s adverse var., am I right?)
Finally we get: Actual fix.o/h = 1250 / 0.02 = 62.5 k (eliminated minuses). Budgeted fix. o/h would be = 62.5 k + 1250.
June 9, 2020 at 9:48 am
Your first line is wrong. Budgeted fixed overheads = actual fixed overheads / 0.98 = 1.020409 x actual fixed overheads.
June 9, 2020 at 10:09 am
Could you share correct one.
May 5, 2020 at 6:08 am
Dear John, in marginal costing there is no fixed overhead , how fixed overhead variance arises in marginal costing,thank you.
May 5, 2020 at 9:05 am
Of course there are fixed overheads!!! 🙂
They are not absorbed into the unit cost, but they exist and reduce the profit. If the actual fixed overheads are different from the budget figure then the profit will be different and there is a variance (but only an expenditure variance, there is no volume variance).
I do suggest that you watch my free lectures on this where I explain!
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