alleryStart learning →Output allows 480 labour hours at Rs 150, but 500 hours were worked. Labour efficiency variance?
ARs 3,000 favourable
BRs 3,000 adverse
CRs 7,500 adverse
DRs 30,000 adverse
Answer & Solution
Correct answer: B. Rs 3,000 adverse
The 20 extra hours at the standard Rs 150 cost 3,000, which is adverse.
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