Question

Which of the following is the correct formula for measuring an efficiency​ variance? A. Efficiency Variance​ = (Actual Quantity times Standard​ Quantity) / Standard Cost B. Efficiency Variance​ = (Actual Quantity​ / Standard​ Quantity) times Standard Cost C. Efficiency Variance​ = (Actual Quantity minus Standard​ Quantity) times Standard Cost D. Efficiency Variance​ = (Actual Quantity​ + Standard​ Quantity) minus Standard Cost

Answer 1

Answer:

C. Efficiency Variance​ = (Actual Quantity minus Standard​ Quantity) times Standard Cost

Explanation:

The efficiency variance is the variance in which it shows a difference between the actual and standard quantities and then the difference amount is multiplied with the standard cost

In mathematically,

Efficiency Variance​ = (Actual Quantity - Standard​ Quantity) × Standard Cost

Hence, the correct option is C.