alleryStart learning →Std time 2 hrs a unit, std rate Rs 25. 150 units took 280 hrs. Labour efficiency variance?
A500 favourable
B500 adverse
C700 favourable
D20 favourable
Answer & Solution
Correct answer: A. 500 favourable
Standard hours are 150 x 2 = 300; saving 20 hours at Rs 25 gives Rs 500 favourable.
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