alleryStart learning →Budget fixed overhead Rs 20,000 for 4,000 hrs. Std hours produced 3,600. Volume variance in Rs?
A2,000 favourable
B20,000 adverse
C1,800 adverse
D2,000 adverse
Answer & Solution
Correct answer: D. 2,000 adverse
Absorbed overhead is 3,600 x Rs 5 = Rs 18,000, Rs 2,000 below budget, so adverse.
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