Answer
The key difference is the cost category they focus on:
1. Direct Materials Efficiency Variance: This variance measures the impact of using more or fewer materials than standard on the cost of direct materials.
2. Variable Manufacturing Overhead Efficiency Variance: This variance assesses the impact of using more or fewer machine-hours than standard on variable overhead costs.
Work Step by Step
The key difference is the cost category they focus on:
1. Direct Materials Efficiency Variance: This variance measures the impact of using more or fewer materials than standard on the cost of direct materials.
2. Variable Manufacturing Overhead Efficiency Variance: This variance assesses the impact of using more or fewer machine-hours than standard on variable overhead costs.
