The standard variable overhead cost of a product is 12, i.e. 6 hours at the rate of 2 per hour. In a certain month, it took 2,400 hours at a cost of…

CA Intermediate · Cost and Management Accounting · MTP · January 2026
The standard variable overhead cost of a product is 12, i.e. 6 hours at the rate of 2 per hour. In a certain month, it took 2,400 hours at a cost of 5,800 to manufacture 450 units. The variable overhead expenditure and efficiency variances, respectively, are:
(A) ₹ 1,000 (F) and - 600 (A)
(B) ₹ 1,000 (A) and - 600 (F)
(C) ₹ 1,000 (F) and - 600 (F)
(D) ₹ 1,000 (A) and - 600 (A)

Suggested Answer and Working Notes:

Correct Answer: Option (B)

₹ 1,000 (A) and - 600 (F)

Topics: Overheads - Absorption Costing Method

Open in Interactive Practice Hub · Full Practice Hub · Chapter Weightage · More in this subject

Related Questions in this Topic