If variable manufacturing overhead is applied to production on the basis of direct labor$-$hours and the direct labor efficiency variance is unfavorable, will the variable overhead efficiency variance be favorable or unfavorable, or could it be either? Explain.

Direct labor efficiency variance and variable overhead efficiency variance are significantly correlated and influenced by the allocation of direct labor hours. When using direct labor hours to calculate variable manufacturing overhead for production, arry inefficiency in direct labor directly impacts the variable overhead's efficiency variance.

An unfavorable direct labor efficiency variance indicates the actual labor required surpassed the initial plan. Since the allocation of variable