If Actual Fixed Overhead Was £120,000 and There Was a £2,600

question 15

Multiple Choice

If actual fixed overhead was £120,000 and there was a £2,600 favourable spending variance and a £2,000 unfavourable volume variance, budgeted fixed overhead must have been

• A)£124,600.
• B)£122,000.
• C)£120,000.
• D)£122,600.

---

Definitions:

Venture-Building

The process of creating new businesses, typically by entrepreneurs or corporations, to explore new market opportunities.

Outside Advice

Consultation or recommendations from external experts or professionals to aid in decision-making or project planning.

Harvest Strategy

A plan or approach for realizing and securing profits from a business venture, investment, or asset at a particular point in time.

Harvest Goal

In entrepreneurship, a strategy or objective focused on the point at which the founders or investors decide to exit the business, usually to reap financial rewards.