The budgeted fixed overheads amounted to ₹75,000. The budgeted and actual production amounted to 15,000 units and 20,000 units respectively. This means that there will be an —

CS Executive · Cost and Management Accounting · PYQS · June 2015
The budgeted fixed overheads amounted to ₹75,000. The budgeted and actual production amounted to 15,000 units and 20,000 units respectively. This means that there will be an —
(A) Under-absorption of ₹25,000
(B) Under-absorption of ₹18,750
(C) Over-absorption of ₹25,000
(D) Over-absorption of ₹18,750.

Answer & Explanation:

Correct Answer: Option (C)

Official answer key: (C).

Topics: Overhead Costing

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