If the standard quantity allowed for direct materials and direct labour is less than the actual quantity used, the efficiency variance is unfavourable.

Name: If the standard quantity allowed for direct materials and direct labour is less than the actual quantity used, the efficiency variance is unfavourable.
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Question

Quizplus · Accepted Answer

An unfavourable efficiency variance occurs when more material or labour is used than anticipated, meaning the standard quantity allowed was less than the actual quantity used.

If the Standard Quantity Allowed for Direct Materials and Direct