Page 1 of 1

Gleim CMA Review

Updates to Part 1
2016 Edition, 1st Printing
February 2016
NOTE: Text that should be deleted is displayed with a line through it. New text is shown with a
blue background.
Study Unit 10 Cost and Variance Measures
Page 354, Subunit 10.7: This update corrects the production volume variance.
FIXED OVERHEAD VARIANCES
Spending Variance
= Actual Fixed Overhead
=
$112,000
=
$ 44,500 U

Production Volume Variance

= Budgeted Fixed Overhead
=
$67,500
=
$67,500
=
$15,000 U 11,250 F

Budgeted Fixed Overhead

67,500

[Budgeted Application Rate

[$7.50
($7.50

(Std Cost Driver/Unit

(1.50
10,500)

Actual Units)]
7,000)]

Copyright 2016 Gleim Publications, Inc. All rights reserved. Duplication prohibited. Reward for information exposing violators. Contact copyright@gleim.com.