A firm has a standard labor rate of Rs. 50 per hour and standard time allowed for 1 component is 4 hours. In March, 2,000 components were produced. Actual labor hours paid were 8,500 hours at Rs. 442,000. 200 hours were lost due to abnormal power failure. Calculate the Labor Efficiency Variance.

Given below are two statements, one labelled as Assertion (A) and the other as Reason (R): Assertion (A): A higher Profit-Volume (P/V) ratio indicates greater profitability potential. Reason (R): P/V ratio measures contribution earned per rupee of sales. Choose the correct answer from the options given below:

The cost variance that arises specifically due to abnormal idle time is classified under: