Activity C of a Project Has a Budgeted Cost of $40,000

question 137

Short Answer

Activity C of a project has a budgeted cost of $40,000 and is 20% complete.The actual cost is $10,000.
(a)What is the value of work completed?
(b)What is the activity difference?

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Definitions:

Variable Costing

An accounting method that includes only variable production costs (direct materials, direct labor, and variable manufacturing overhead) in product costs, excluding fixed overhead.

Production Cost

The total expense incurred in manufacturing a product, including raw materials, labor, and overheads.

Unit Costs

The cost incurred to produce, store, and sell one unit of a product, including direct materials, labor, and overhead expenses.

Variable Costing

A costing method that includes only variable production costs (direct materials, direct labor, and variable manufacturing overhead) in product costs.