alleryStart learning →Total labour cost variance is Rs 300 favourable and the rate variance is Rs 400 adverse. What is the efficiency variance?
ARs 700 favourable
BRs 100 favourable
CRs 700 adverse
DRs 100 adverse
Answer & Solution
Correct answer: A. Rs 700 favourable
Rate and efficiency must add to the total: 300 F = 400 A + efficiency, so efficiency is Rs 700 favourable.
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