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If budgeted price of input is 70 actual quantity of input...

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Management Accounting
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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

Answer & Solution
Correct Answer: Option B
Efficiency variance = (Actual quantity of input - Budgeted quantity of input) × Budgeted price of input
= (250 - 90) units × $70 = $11,200.
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