A company has a normal capacity of 120 machines, working 8 hours per day for 25 days in a month. The fixed overheads are budgeted at ₹1,44,000 per month. The standard time required to manufacture one unit of product is 4
CS Executive · Cost and Management Accounting · PYQS · December 2016
A company has a normal capacity of 120 machines, working 8 hours per day for 25 days in a month. The fixed overheads are budgeted at ₹1,44,000 per month. The standard time required to manufacture one unit of product is 4 hours. In April, 2016, the company worked 24 days of 840 machine hours per day and produced 5,305 units of output. The actual fixed overheads were ₹1,42,000. The efficiency variance will be —
Answer & Explanation:
Correct Answer: Option (A)
Official answer key: (A).
Topics: Cost Accounting
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