Calculate the Forecasted Cost at Completion If the Total Budgeted

question 9

Multiple Choice

Calculate the forecasted cost at completion if the total budgeted cost = R100 000, the CEV is R80 000, and the CAC is R40 000.

• A)FCAC = R50 000
• B)FCAC = R200 000
• C)FCAC = R60 000
• D)FCAC = R40 000

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Definitions:

Fixed Manufacturing Overhead Volume Variance

The difference between the budgeted and actually applied fixed manufacturing overhead, based on standard costs for a given period.

Fixed Overhead Budget Variance

The difference between actual fixed overhead costs and the budgeted or expected fixed overhead costs.

Volume Variance

A measure of the difference between the budgeted and actual volume of production, impacting costs.

Overhead Variances

The difference between actual overhead costs and the budgeted or standard overhead costs.