What is the difference between Capacity Variance and Efficiency Variance?
gabriellenlewis
Registered Posts: 129
They both seem to be:
Actual Hours x SR
- Standard Hours x SR
???
Actual Hours x SR
- Standard Hours x SR
???
0
Comments
-
Capacity variance is the difference between unflexed budget and Actual Hrs x SR
Whereas efficiency variance is the difference between Actual Hrs x SR and Standard Hrs for Actual production x SR
Hope this makes sense.0
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