27. Pre-determined factory overhead rate was ₹10 per labour hour. Actual labour hour worked 80,000. Actual factory overhead was ₹8,00,000 and pre-determined factory overhead was ₹7,60,000. The amount of over/under absorb

CS Executive · Cost and Management Accounting · PYQS · June 2021
27. Pre-determined factory overhead rate was ₹10 per labour hour. Actual labour hour worked 80,000. Actual factory overhead was ₹8,00,000 and pre-determined factory overhead was ₹7,60,000. The amount of over/under absorbed factory overhead was:
(A) ₹50,000 under-absorbed
(B) ₹50,000 over-absorbed
(C) ₹40,000 under-absorbed
(D) None of the above

Answer & Explanation:

Correct Answer: Option (D)

Official answer key: (D).

Topics: Overheads

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