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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › Planning efficiency variance
if a planning efficiency variance is valued at an original standard rate, the planning rate variance is valued at the original efficiency level.
sir is the aforementioned statement true or false?
and can you also explain the why behind your answer.
I am puzzled why you are asking me this because presumably you found this question in a book in which case you will have the answer in the same book!!
The planning labour rate of pay variance is calculated using the actual hours worked.
This is all explained in my free lectures on planning and operational variances.