At 60% level of production the amount of factory overhead is ₹40,000 (40% fixed). At 100% level of production it amounts to: (A) ₹16,000 (B) ₹24,000 (C) ₹40,000 (D) ₹56,000

CS Executive · Cost and Management Accounting · PYQS · December 2017
At 60% level of production the amount of factory overhead is ₹40,000 (40% fixed). At 100% level of production it amounts to: (A) ₹16,000 (B) ₹24,000 (C) ₹40,000 (D) ₹56,000
(A) ₹16,000
(B) ₹24,000
(C) ₹40,000
(D) ₹56,000

Answer & Explanation:

Correct Answer: Option (D)

Official answer key: (D).

Topics: Budgeting

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