Direct materials efficiency variance is further analyzed to understand the fluctuations in the interchangeable input resources into:

Question

Quizplus · Accepted Answer

The direct materials efficiency variance can be further broken down into mix and yield variances. The mix variance arises due to the difference between the standard mix of materials and the actual mix used in production. The yield variance, on the other hand, results from the difference between the standard yield of output from a given quantity of input and the actual yield achieved. Therefore, option B is the most appropriate choice.

Direct Materials Efficiency Variance Is Further Analyzed to Understand the Fluctuations