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
C. $12,200
D. $13,200
Answer: Option B
Solution(By Examveda Team)
Efficiency variance = (Actual quantity of input - Budgeted quantity of input) × Budgeted price of input= (250 - 90) units × $70 = $11,200.
Related Questions on Management Accounting
A. resourcing
B. value acquiring
C. production
D. value acquaintance
Examining of past performance, exploring alternative and planning future is
A. learning
B. alternating
C. examining
D. deciding
Time that a company takes to create and produce a new product is classified as
A. management factor
B. time factor
C. customer factor
D. chain factor
Purpose of management accounting is to
A. past orientation
B. help banks make decisions
C. help managers make decisions
D. help investors make decision
Join The Discussion