alleryStart learning →Actual hours 520, std rate Rs 4, actual variable overhead Rs 2,200. Spending variance in Rs?
A120 favourable
B220 adverse
C80 adverse
D120 adverse
Answer & Solution
Correct answer: D. 120 adverse
Allowed overhead for 520 hours is Rs 2,080; actual Rs 2,200 is Rs 120 higher, so it is adverse.
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