# CMA Study Group

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• #### 1.  I want the answer for a question related to Overhead Variance. Please someone help me

Posted 09-17-2023 02:27 PM

A factory uses a standard costing system and budgeted \$50,000 of fixed overhead based on 25,000

machine hours, and production of 10,000 units. During the period, the factory actually produced

12,000 units and incurred 29,000 machine hours. What is the fixed overhead efficiency variance?

a. \$0.

b. \$2,000 favorable.

c. \$2,000 unfavorable.

d. \$8,000 favorable

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Aakash Venkatesan
Student
Salem TN
India
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• #### 2.  RE: I want the answer for a question related to Overhead Variance. Please someone help me

Posted 09-18-2023 12:20 AM

There is no such thing as fixed overhead efficiency variance

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Alvin Dogillo
Pasig
Philippines
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• #### 3.  RE: I want the answer for a question related to Overhead Variance. Please someone help me

Posted 09-18-2023 01:35 AM
Hello,

Fixed Overhead Efficiency Variance = (Standard FOH Rate Per hour * Standard Hours for Actual units) - (Standard FOH rate per Hour * Actual Hours)
= (2*30000) - (2*29000)
= 2000 Favourable.

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Warm Regard,
Nanavel Kumar

• #### 4.  RE: I want the answer for a question related to Overhead Variance. Please someone help me

Posted 09-18-2023 01:41 AM
There is no such thing as fixed overhead efficiency.
There is only two variance computed under fixed overhead which are spending and volume variance.

Efficiency variance is only for variable overhead and other variable manufacturing cost.

• #### 5.  RE: I want the answer for a question related to Overhead Variance. Please someone help me

Posted 09-18-2023 01:40 AM

There is nothing called fixed overhead variance, it's called production volume variance

Therefore, the correct answer is zero

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Hossameldin Salah Elyan
Accountant
Giza
Egypt
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• #### 6.  RE: I want the answer for a question related to Overhead Variance. Please someone help me

Posted 09-18-2023 06:56 AM

Hi, the answer will be \$0 as there is no fixed overhead efficiency variance.

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Sanjivani Kutwal
Other
Pune MH
India
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• #### 7.  RE: I want the answer for a question related to Overhead Variance. Please someone help me

Posted 09-18-2023 07:02 AM

Finally I saw same answer which is 0.

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Alvin Dogillo
Pasig
Philippines
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