Management Accounting Test Questions
Q. ABC Ltd is operating a system of standard costing with closing of books done every quarter. The budgeted overheads are Rs 2,55,000. Also, the overhead rate was pre-decided @ Rs 5.1 per labour hours and during a quarter actually used 52,000 labour hours, instead of 51,000 hours. The actual overheads resulted in a rate of Rs 4.9 per labour hours. What is volume variance?
a. Rs 5,100 favorable
b. Rs 5,200 favorable
c. Rs 5,100 unfavorable
d. Rs 5,200 unfavorable
No explanation is available for this question!
