The following information is relating to variable overheads of a company : Budgeted production for May, 2021: 45000 units Budgeted variable overhead: ₹1,17,000 Standard time for one unit : 2 hours Actual production for M

CS Executive · Cost and Management Accounting · PYQS · December 2021
The following information is relating to variable overheads of a company : Budgeted production for May, 2021: 45000 units Budgeted variable overhead: ₹1,17,000 Standard time for one unit : 2 hours Actual production for May, 2021: 37,500 units Actual hours worked: 67500 hours Actual variable overhead: ₹1,05,000 The Variable Overhead Expenditure Variance will be :
(A) ₹17,250(A)
(B) ₹9,750(F)
(C) ₹7,500(A)
(D) ₹17,250(F)

Answer & Explanation:

Correct Answer: Option (A)

Official answer key: (A).

Topics: Variance Analysis

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