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Elephant company had budget fixed overhead expense of 10000 the actual sales exceeded the budgeted sale with 200 units the total fixed overhead variance was 5000 favourable elephant co uses marginal costing system
Calculate the fixed overhead expense activity variance
97000
98000
11000
Nil
The answer marked is 11000 but mine is not same I have calculated OAR but it seems O have made a mistakeI do not know where you are finding these questions, but there is no such thing as a ‘fixed overhead activity variance’.
Given that they are using marginal costing, the only fixed overhead variance is the expenditure variance (and there is no absorption rate anyway when using marginal costing).
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