Which of the following formula is used to calculate efficiency ratio —

CS Executive · Cost and Management Accounting · PYQS · June 2015
Which of the following formula is used to calculate efficiency ratio —
(A) Actual hours / Budgeted hours × 100
(B) Standard hours for actual production / Actual hours × 100
(C) Standard hours for actual production / Budgeted hours × 100
(D) Actual hours / Standard hours for actual production × 100.

Answer & Explanation:

Correct Answer: Option (B)

Official answer key: (B).

Topics: Labour Variance

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