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Figure 14.1
-Refer to Figure 14.1. A movement from Point A to Point D can be caused by:
Raw Materials Used
The basic materials and components required in the production process of goods.
Work in Process
Work in Process represents partially completed goods that are still in the production process at the end of a reporting period.
Labor Rate Variance
The difference between the actual cost of labor and the standard or budgeted cost, used to control and manage labor costs effectively.
Labor Efficiency Variance
The difference between the actual labor hours used and the standard hours expected for a level of output.
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