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-In the above figure, suppose the economy is initially at point A. People come to expect the future
u.S. exchange rate to be higher. As a result there is a change from point A to a point such as
)
Direct Labour
The wages and other compensation paid to employees who are directly involved in producing goods or providing services.
Labour Rate Variance
The difference between the actual cost of labor and the expected (or standard) cost of labor for the actual production level.
Labour Efficiency Variance
A measure used in accounting to indicate the difference between the actual number of labor hours used and the standard number of hours that should have been used, multiplied by the standard labor rate.
Variable Overhead
Costs that vary with the level of production or business activity, such as utilities and indirect materials, but do not directly correlate to direct labor or materials.
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