In a manufacturing firm normal capacity is 5,000 hours. Its budgeted fixed overhead rate is ₹10 per standard hour. The actual level of activity is 4,400 standard hours and the actual fixed overhead is ₹52,000. The firm's
CS Executive · Cost and Management Accounting · PYQS · December 2017
In a manufacturing firm normal capacity is 5,000 hours. Its budgeted fixed overhead rate is ₹10 per standard hour. The actual level of activity is 4,400 standard hours and the actual fixed overhead is ₹52,000. The firm's fixed overhead volume variance is: (A) ₹6,000 A (B) ₹6,000 F (C) ₹2,000 A (D) ₹8,000 A
Answer & Explanation:
Correct Answer: Option (A)
Official answer key: (A).
Topics: Standard Costing
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