In management control, an efficiency variance is also referred as usage variance. Efficiency variance is the difference between the theoretical amount of inputs required to produce a unit of output and the actual number of inputs used to produce the unit of output. The expected inputs to produce the unit of output are based on models or past experience.
If an efficiency variance is 200 units and actual input quantity is 750 units, then budgeted input quantity will be
Static budget amount is subtracted from actual result to calculate static budget variance. The static budget is used as the basis from which actual results are compared. The resulting variance is called a static budget variance.