The efficiency variance for either labor or materials can be divided into

A. Yield variance and mix variance.

B. Spending variance and yield variance.

C. Yield variance and price variance.

D. Volume variance and mix variance.

A. The total material quantity (efficiency) and labor efficiency variances can be broken down into two subvariances:  the mix and the yield variances. The mix variance is the part of the quantity variance that results because the mix of material actually used was different from the mix that was supposed to have been used. (For example, including more corn and less wheat in the cereal than the standard called for). The yield variance results from the difference between the total quantity of the inputs that were actually used to produce the actual output and the total standard quantity that should have been used to produce the actual output.

B. The total material quantity (efficiency) and labor efficiency variances can be broken down into the two subvariances, but the spending variance is not one of them.

C. The total material quantity (efficiency) and labor efficiency variances can be broken down into the two subvariances, but the price variance is not one of them.

D. The total material quantity (efficiency) and labor efficiency variances can be broken down into the two subvariances, but the volume variance is not one of them.