A manufacturing unit has budgeted standard hours of 15,000 for May 2025. During the month, the capacity utilisation ratio was 85%, while the…
CA Intermediate · Cost and Management Accounting · MTP · January 2026
A manufacturing unit has budgeted standard hours of 15,000 for May 2025. During the month, the capacity utilisation ratio was 85%, while the efficiency ratio stood at 110%. The factory reported smooth operations with no major downtime. The standard hours allowed for May 2025 was:
Suggested Answer and Working Notes:
Correct Answer: Option (A)
14,025
Topics: Budgets and Budgetary Control
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