Direct labour efficiency variance can be analyzed further into mix and yield variances if more than one class of direct labour that are good substitutes is used in operations.

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Direct labour efficiency variance can be further analyzed into mix and yield variances when more than one class of direct labour that are good substitutes is used in operations. The mix variance arises due to differences in the proportion of the different types of labour used, while the yield variance arises due to differences in the efficiency with which each type of labour is utilized.

Direct Labour Efficiency Variance Can Be Analyzed Further into Mix