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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