Operating and accounting figures for the month of January, 2015 with respect to overheads were as under : Actual overheads: ₹8,600 Actual direct labour hours: ₹6,000 Standard labour hours: ₹5,000 Budget equation = ₹3,000
CS Executive · Cost and Management Accounting · PYQS · June 2016
Operating and accounting figures for the month of January, 2015 with respect to overheads were as under : Actual overheads: ₹8,600 Actual direct labour hours: ₹6,000 Standard labour hours: ₹5,000 Budget equation = ₹3,000 + (90 paise × Actual direct hours) Absorption equation = ₹1.50 × Standard direct labour hours The budgeted overheads amounted to ₹8,400 and absorbed overheads to ₹8,250. The overheads volume variance is —
Answer & Explanation:
Correct Answer: Option (A)
Official answer key: (A).
Topics: Overhead Costing
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