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Analyze the REA model below. Identify and describe (in narrative form) the tables you would create based on the model; do not describe the tables by listing the field names.
Variable Overhead Rate Variance
The variance between the expected variable overhead according to standard cost and the actual variable overhead costs incurred.
Variable Overhead Efficiency Variance
The difference between the actual variable overhead costs and the standard cost of variable overheads for the actual production units.
Direct Labor-Hours
The total time worked directly on the manufacturing of products.
Variable Overhead Rate Variance
The difference between the actual variable overhead incurred and the standard cost of variable overhead allocated to the production based on a predetermined rate.
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