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What helps to explain the end of apartheid in South Africa?
Overhead Absorption Rate
Budgeted overhead divided by budgeted volume. Also called overhead application rate.
Direct Labor Hours
The total hours worked by employees directly involved in the manufacturing process.
Standard Volume
The amount of volume the plant would have generated if each unit of product manufactured used precisely the standard unit of volume allowed.
Budgeted Volume
The amount of production expected to occur during the year, usually stated in terms of a common input measure such as direct labor hours. Budgeted volume can be estimated as expected volume for next year or normal volume over the long run.
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