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Examveda

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.

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