During a certain period, 4,000 labour hours were utilized, and the standard hours for actual production were 5,500 hours. The Variable Overhead…

CA Intermediate · Cost and Management Accounting · PYQS · January 2025
During a certain period, 4,000 labour hours were utilized, and the standard hours for actual production were 5,500 hours. The Variable Overhead Efficiency Variance amounted to 15,000 (Favourable). Calculate the Standard Variable Overhead Rate per hour.
(A) 15 per hour
(B) 20 per hour
(C) 10 per hour
(D) 25 per hour

Suggested Answer and Working Notes:

Correct Answer: Option (C)

10 per hour

Topics: Standard Costing, Overheads - Absorption Costing Method

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