Given an efficiency variance of 200 units and an actual input quantity of 750 units, what is the budgeted input quantity?

Multiple choice question for Direct Cost Variances and Management Control. Select an option, then review the explanation below.

Explanation

The efficiency variance is calculated as the difference between the actual input quantity and the budgeted input quantity. Since the efficiency variance is 200 units and the actual input is 750 units, the budgeted input quantity equals 750 units minus 200 units, resulting in 550 units.

Practice related questions from the same subject.

1.Within the hierarchy of costing and budgeting, which of the following represents a product sustaining cost?
2.Given that the actual cost of a material is $700 while the planned cost was $900, what type of variance is observed?
3.Given that the actual outcome is $65,000 and the static budget variance amounts to $35,000, what is the value of the static budget?
4.What term is used to describe the anticipated performance of a company?
5.Given that the actual labor cost is $1200 while the planned labor cost is $1000, what is the nature of the labor price variance?

Given an efficiency variance of 200 units and an actual input quantity of 750 units, what is the budgeted input quantity?

Explanation

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