Given an actual input of 300 units and a planned input of 100 units, what is the efficiency variance?

Multiple choice question for Direct Cost Variances and Management Control. Select an option, then review the explanation below.

Explanation

The efficiency variance is calculated by comparing the actual input to the budgeted input. With an actual input of 300 units and a budgeted input of 100 units, the variance amounts to 200 units.

Practice related questions from the same subject.

1.Within the hierarchy of costing and budgeting, which of the following represents a product sustaining cost?
2.Given that the actual cost of a material is $700 while the planned cost was $900, what type of variance is observed?
3.Given that the actual outcome is $65,000 and the static budget variance amounts to $35,000, what is the value of the static budget?
4.What term is used to describe the anticipated performance of a company?
5.Given that the actual labor cost is $1200 while the planned labor cost is $1000, what is the nature of the labor price variance?

Given an actual input of 300 units and a planned input of 100 units, what is the efficiency variance?

Explanation

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