The following figures are extracted from the books of a company: Budgeted overheads ₹ 20,000 (Fixed ₹ 12,000, Variable ₹ 8,000) Budgeted output…

CA Intermediate · Cost and Management Accounting · MTP · September 2026
The following figures are extracted from the books of a company: Budgeted overheads ₹ 20,000 (Fixed ₹ 12,000, Variable ₹ 8,000) Budgeted output 2,500 units Actual Overheads ₹21,800 (Fixed ₹ 11,800, Variable ₹ 10,000) Actual output 3000 Variable Overheads and fixed overheads cost variance will be:
(A) (a) 400 (A) and 2600 (F)
(B) (b) 400 (A) and 200 (F)
(C) (c) 2000 (A) and 200 (F)
(D) (d) 2000 (F) and 200 (A)

Suggested Answer and Working Notes:

Correct Answer: Option (A)

(a) 400 (A) and 2600 (F)

Topics: Budgets and Budgetary Control, Overheads - Absorption Costing Method

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