If the efficiency variance amounts to 200 units and the actual quantity of input used is 500 units, what is the budgeted input quantity?

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

Explanation

The efficiency variance is calculated as the difference between the actual input quantity and the budgeted input quantity. Given an efficiency variance of 200 units and an actual input of 500 units, the budgeted input quantity is 500 - 200 = 300 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?
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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 efficiency variance amounts to 200 units and the actual quantity of input used is 500 units, what is the budgeted input quantity?

Explanation

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