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Management · Q148

Management Accounting

Graduate and Post Graduate · Management · question 148

Q148

An efficiency variance is 200 units and actual input quantity is 500 units, then budgeted input quantity will be

A.
300 units
Answer
B.
700 units
C.
800 units
D.
500 units

Answer: Option A

Solution

Answer: Option A
Solution:
Budgeted input quantity = Actual input quantity - Efficiency variance
= 500 units - 200 units = 300 units.