From the following data, calculate variable overheads expenditure variance: Budgeted production : 300 units Budgeted variable overheads : ₹7,800 Standard time for one unit : 20 hours Actual production : 250 units Actual
CS Executive · Cost and Management Accounting · PYQS · December 2014
From the following data, calculate variable overheads expenditure variance: Budgeted production : 300 units Budgeted variable overheads : ₹7,800 Standard time for one unit : 20 hours Actual production : 250 units Actual hours worked : 4,500 hours Actual variable overheads : ₹7,000
Answer & Explanation:
Correct Answer: Option (B)
Correct answer: (B) ₹1,150 (A). Standard variable-overhead rate/hour = 7,800/(300×20) = 1.30; expenditure variance = 4,500×1.30−7,000 = 1,150 adverse.
Topics: Standard Costing
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