alleryStart learning →Variable overhead of Rs 12,600 for 1,000 hours; standard Rs 12 per hour. Spending variance?
ARs 1,200 adverse
BRs 600 favourable
CRs 12,000 adverse
DRs 600 adverse
Answer & Solution
Correct answer: D. Rs 600 adverse
Allowed spend is 1,000 x 12 = 12,000; actual 12,600 exceeds it by 600, adverse.
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