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-In Figure 8.1, the overall function of Steps 6 -8, which occur simultaneously, is to
Variable Manufacturing Overhead
Costs in the manufacturing process that fluctuate with the level of production activity, such as utilities and materials.
Direct Labor-hours
The full amount of labor hours by employees directly contributing to the generation of products or services.
Variable Overhead Rate Variance
The difference between the actual variable overhead incurred and the expected (or standard) variable overhead based on a standard rate.
Variable Manufacturing Overhead
Costs that vary with the level of production output, such as utilities or raw materials.
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