CIMA Fundamentals of management accounting BA2 Question # 47 Topic 5 Discussion

CIMA Fundamentals of management accounting BA2 Question # 47 Topic 5 Discussion

BA2 Exam Topic 5 Question 47 Discussion:
Question #: 47
Topic #: 5

Refer to the exhibit.

BA2 Question 47

A company manufactures a single product, and relevant data is as follows:

Note. Overheads are assumed to be related to direct labor hours.

The actual results for the period were as follows:

BA2 Question 47

What is the variable overhead efficiency variance?


A.

£7,500 favorable


B.

£7,500 adverse


C.

£6,500 favorable


D.

£6,500 adverse


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