📢 Too many exams? Don’t know which one suits you best? Book Your Free Expert 👉 call Now!


    ⚡ Azaadi sale - Celebrate Independence Day with Flat 55% Off On all courses! 13 to 17 Aug ⚡ Enroll Now

    Question

    In a manufacturing company, budgeted production is

    10,000 units and budgeted fixed overheads are ₹5,00,000. If actual output is 12,000 units, what is the fixed overhead volume variance?
    A ₹1,00,000 Favourable Correct Answer Incorrect Answer
    B ₹1,00,000 Adverse Correct Answer Incorrect Answer
    C ₹0 Correct Answer Incorrect Answer
    D ₹50,000 Favourable Correct Answer Incorrect Answer

    Solution

    Fixed OH rate = ₹5,00,000 / 10,000 = ₹50 Variance = (12,000 – 10,000) × ₹50 = ₹1,00,000 Favourable

    Practice Next
    ask-question

    Not sure which exam is best for you Talk to our expert

    Get My Free Call