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

  • google app store apple app store

    • Question

      Factory overheads are absorbed at 20% of direct wages.

      Direct wages = ₹1,00,000, actual overheads = ₹22,000. What is the overhead variance?
      A ₹2,000 over-absorbed Correct Answer Incorrect Answer
      B ₹2,000 under-absorbed Correct Answer Incorrect Answer
      C Nil Correct Answer Incorrect Answer
      D ₹20,000 over-absorbed Correct Answer Incorrect Answer
      E ₹22,000 under-absorbed Correct Answer Incorrect Answer

      Solution

      Absorbed = 20% of 1,00,000 = 20,000. Actual = 22,000. Difference = under-absorbed 2,000.

      Practice Next
      ask-question