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Problem
From the following data, calculate overhead variances of following:
(a) Variable overhead expenditure variance (b) Fixed overhead expenditure variance (c) Total overhead cost variance (d) Fixed overhead Capacity variance (e) Fixed Overhead Calendar Variance (f) Fixed overhead efficiency variance
Budgeted Actual
Output 15,000 units 16,000 unitsNumber of working days 25 28Fixed overheads Rs. 30,000 Rs. 30,500Variable overhead Rs. 45,000 Rs. 47,000There was an increase of 5% in capacity.
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