Describe the difference between a direct materials efficiency variance and a variable manufacturing overhead efficiency variance.

Question content area bottom

Part $1$

A$.$

A direct materials efficiency variance indicates whether more or less direct materials were used than was budgeted for the actual output achieved. A variable manufacturing overhead efficiency variance indicates whether more or less of the chosen allocation base was used than was budgeted for the actual output achieved.

B$.$

A direct materials efficiency variance indicates whether more or less direct materials were used than was budgeted for the static budget. A variable manufacturing overhead efficiency variance indicates whether more or less of the chosen allocation base was used than was budgeted for the static budget.

C$.$

A direct materials efficiency variance indicates whether more or less of the chosen allocation base was used than was budgeted for the actual output achieved. A variable manufacturing overhead efficiency variance indicates whether more or less direct materials were used than was budgeted for the actual output achieved.

D$.$

A direct materials efficiency variance indicates whether more or less was paid for direct materials than was budgeted for the actual output achieved. A variable manufacturing overhead efficiency variance indicates whether more or less was paid for the chosen allocation base than was budgeted for the actual output achieved.