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


ANSWER: See Answer
 
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