If the actual input used is 200 units and the planned input is 50 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 subtracting the budgeted input quantity from the actual input quantity. Here, 200 units (actual) minus 50 units (budgeted) equals 150 units, which corresponds to option C.

Practice related questions from the same subject.

1.Within the hierarchy of costing and budgeting, which of the following represents a product sustaining cost?
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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?

If the actual input used is 200 units and the planned input is 50 units, what is the efficiency variance?

Explanation

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