“During September, 300 labour hours were worked for a total cost of Rs. 4800 The variable overhead expenditure variance was Rs. 600 (A) Overheads are assumed to be related to direct labour hours of active working. What was the standard cost per labour hour?”

The correct answer is A. Rs. 14.

The variable overhead expenditure variance is the difference between the actual variable overhead costs incurred and the budgeted variable overhead costs. In this case, the variable overhead expenditure variance is Rs. 600 unfavorable, which means that the actual variable overhead costs were Rs. 600 more than the budgeted variable overhead costs.

The standard cost per labor hour is the budgeted variable overhead cost per labor hour. To calculate the standard cost per labor hour, we need to divide the budgeted variable overhead costs by the budgeted labor hours. In this case, the budgeted variable overhead costs are Rs. 4200 and the budgeted labor hours are 300, so the standard cost per labor hour is Rs. 14.

Option B is incorrect because it is the total variable overhead costs incurred in September. Option C is incorrect because it is the budgeted variable overhead costs. Option D is incorrect because it is the actual variable overhead costs incurred in September.