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Hello Sir ,
from a mock exam my answer is different from what the computer answer for the following,
XPLDE
budgeted units 13120
budgeted O.V.H $ 45920
budgeted l. hours 26240Actual units 12920
Actual F .O.H 48400
Actual L .hours 25200What is Fixed overhead capacity variance .
Computer Answer 1820 A
My Answer 1820 F
They worked fewer hours than we budgeted, and that on its own would mean they would produce fewer units. Therefore the variance is adverse.
For a detailed explanation you really need to watch the Paper F2 lecture on fixed overhead variances (because this is revision of F2).
However, it is extremely unlikely with the current examiner that you will be asked fixed overhead variances in the F5 exam (because they were examined in Paper F2)
Thanks,
But all the types of fixed overhead variance will not in exam or some,
Thanks a lot,
Hir Sir,
Yes It was clear that they worked less hours but I do not why I saw it the other way round,
Thanks,
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