Question

AB Company Limited is having Standard Costing system in operation for quite some time. The following data
relating to the month of April, 1994, is available form the cost records:
Budgeted Actual
Output (in units) 30000 32500
Operating hours 30000 33000
Fixed Overheads (Rs.) 45000 50000
Variable Overheads (Rs.) 60000 68000
Working Days 25 26
You are required to work out the relevant variances (on the basis of output).

Answer 1

Answer:

Explanation:

AB Company Limited is having Standard Costing system in operation for quite some time. The following data

relating to the month of April, 1994, is available form the cost records:

Budgeted Actual

Output (in units) 30000 32500

Operating hours 30000 33000

Fixed Overheads (Rs.) 45000 50000

Variable Overheads (Rs.) 60000 68000

Working Days 25 26

You are required to work out the relevant variances (on the basis of output).