Given that the flexible budget variance amounts to $105,000 and the actual cost incurred is $65,000, what is the value of the flexible budget cost?

Multiple choice question for Direct Cost Variances and Management Control. Select an option, then review the explanation below.

Explanation

The flexible budget variance is calculated as the difference between the actual cost and the flexible budget cost. Since the variance is $105,000 and the actual cost is $65,000, the flexible budget cost equals $65,000 minus $105,000, resulting in $40,000.

Practice related questions from the same subject.

1.Within the hierarchy of costing and budgeting, which of the following represents a product sustaining cost?
2.Given that the actual cost of a material is $700 while the planned cost was $900, what type of variance is observed?
3.Given that the actual outcome is $65,000 and the static budget variance amounts to $35,000, what is the value of the static budget?
4.What term is used to describe the anticipated performance of a company?
5.Given that the actual labor cost is $1200 while the planned labor cost is $1000, what is the nature of the labor price variance?

Given that the flexible budget variance amounts to $105,000 and the actual cost incurred is $65,000, what is the value of the flexible budget cost?

Explanation

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