If the formula for revised labour efficiency variance (RLEV) is :
=( standard time for actual output - revised standard time) X standard rate {please elaborate this formula more ?}
then in which situation ans. will be favourable or adverse, please mention both. kindly give ans. in following format.
standard time for actula output < revised standard time = RLEV (favourable or adverse?) AND
standard time for actula output > revised standard time = RLEV (favourable or adverse?)
AND, if the formula for revised variance (RV) is:
=original std. cost of actual output - revised std. cost of actual output {please elaborate this formula more ?}
then in which situation ans. will be favourable or adverse, please mention both. kindly give ans. in following format.
original std. cost of actual output < revised std. cost of actual output = RV (favourable or adverse?) AND
original std. cost of actual output > revised std. cost of actual output = RV (favourable or adverse?)
thanks in advance.