The budgeted fixed overheads for a budgeted production of 10,000 units is ₹20,000. For a certain period the actual production was 11,000 units and actual expenditure ₹24,000. The volume variance is —

CS Executive · Cost and Management Accounting · PYQS · June 2015
The budgeted fixed overheads for a budgeted production of 10,000 units is ₹20,000. For a certain period the actual production was 11,000 units and actual expenditure ₹24,000. The volume variance is —
(A) ₹2,000(F)
(B) ₹4,000(A)
(C) ₹2,000(A)
(D) ₹4,000(F).

Answer & Explanation:

Correct Answer: Option (A)

Official answer key: (A).

Topics: Variance Analysis

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