Q158
If budgeted price of input is 70, actual quantity of input is 250 units and allowed budgeted quantity of input is 90 units, then efficiency variance will be
A.
$23,800
B.
$11,200
AnswerC.
$12,200
D.
$13,200
Answer: Option B
Solution
Answer: Option B
Solution:
Efficiency variance = (Actual quantity of input - Budgeted quantity of input) × Budgeted price of input = (250 - 90) units × 11,200.