For any actual level of output,the efficiency variance is the difference between actual quantity of input used and the budgeted quantity of input allowed to produce actual output,multiplied by the actual price.

Question

Quizplus · Accepted Answer

The efficiency variance is the difference between the actual quantity of input used and the budgeted quantity of input allowed to produce the actual output, multiplied by the standard price, not the actual price.

For Any Actual Level of Output,the Efficiency Variance Is the Difference