alleryStart learning →Sixty units were made in 170 hours; standard is 3 hours per unit at Rs 40 per hour. What is the efficiency variance?
ARs 400 adverse
BRs 400 favourable
CRs 10 favourable
DRs 6,800 adverse
Answer & Solution
Correct answer: B. Rs 400 favourable
Standard hours are 180, so 10 hours saved at Rs 40 is Rs 400 favourable.
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