If Capacity variance is ₹3,520 (F) and Efficiency variance is ₹480 (F), then the Fixed overhead volume variance would be:

CS Executive · Cost and Management Accounting · PYQS · June 2018
If Capacity variance is ₹3,520 (F) and Efficiency variance is ₹480 (F), then the Fixed overhead volume variance would be:
(A) ₹4,000 (F)
(B) ₹4,000 (A)
(C) ₹3,040 (F)
(D) ₹3,040 (A)

Answer & Explanation:

Correct Answer: Option (A)

Official answer key: (A).

Topics: Cost and Management Accounting

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