The following data are related to overheads of a particular period : Budgeted Actual Fixed overheads (₹) 30,000 28,000 Direct labour hours 40,000 39,000 Overheads are absorbed on the basis of labour hours. What will be t

CS Executive · Cost and Management Accounting · PYQS · June 2019
The following data are related to overheads of a particular period : Budgeted Actual Fixed overheads (₹) 30,000 28,000 Direct labour hours 40,000 39,000 Overheads are absorbed on the basis of labour hours. What will be the under or over absorbed overheads?
(A) Over absorbed ₹1,250
(B) Under absorbed ₹1,250
(C) Over absorbed ₹1,000
(D) Under absorbed ₹1,000

Answer & Explanation:

Correct Answer: Option (A)

Official answer key: (A).

Topics: Overheads

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