The budgeted fixed overheads amounted to ₹84,000. The budgeted and actual production amounted to 20,000 units and 24,000 units respectively. This means that there will be an —
CS Executive · Cost and Management Accounting · PYQS · December 2014
The budgeted fixed overheads amounted to ₹84,000. The budgeted and actual production amounted to 20,000 units and 24,000 units respectively. This means that there will be an —
Answer & Explanation:
Correct Answer: Option (C)
Correct answer: (C) Over-absorption of ₹16,800. Fixed overhead absorbed = 24,000×84,000/20,000 = 1,00,800; excess over actual/budget fixed cost = 16,800.
Topics: Overhead Costing
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