alleryStart learning →Standard labour rate is Rs 40 an hour. 200 hours were allowed but only 190 worked. What is the efficiency variance?
ARs 400 adverse
BRs 400 favourable
CRs 190 favourable
DRs 800 favourable
Answer & Solution
Correct answer: B. Rs 400 favourable
Saving of 10 hours at Rs 40 an hour is Rs 400, and fewer hours than allowed is favourable.
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