Fixed overhead spent Rs 12,500; Rs 10,800 absorbed. Under-absorption in Rs?
A1,200
B500
C2,300
D1,700
Answer & Solution
Correct answer: D. 1,700
Under-absorption equals actual spend less absorbed amount: 12,500 minus 10,800 is Rs 1,700.
Keep practising Standard Costing and Variance Analysis
Browse all Standard Costing and Variance Analysis questions for CA Final, or explore more Cost and Management Accounting topics.
Related questions
Management accounting information is computed by reference to whose needs?Variance analysis compares actual and budgeted cost of which inputs?What happens in management by exception when a deviation from the norm is insignificant?In passive management by exception, when does the manager step in?An adverse variance exists when budget versus actual leads to what effect on profit?Under standard costing, where are fixed costs of unsold goods made in a period carried forVariance analysis is a tool of budgetary control and of what other function?Besides costs, variance analysis can also be carried out for which other item?