1. A product has a budgeted fixed production overhead cost per unit of P10.Production volume for the period was:

Actual 15 000 units

Budget 15 500 units

Actual fixed overhead expenditure for the year was P161 000.

What was the fixed overhead expenditure variance?

1. Nil
2. P5 000 Adverse
3. P6 000 Adverse
4. P 8 000 adverse

2. Which of the following factors should be the least likely to affect a decision about whether or not to investigate a variance during a particular month in the middle of financial year?
   1. Size of the variance
   2. Whether it is favourable or adverse
   3. Whether it is likely to be controllable
   4. The trend in the monthly variance over the year to date