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Evaluate
Volume Variance
The difference between the budgeted amount of overhead based on standard production volumes and the actual overhead incurred, due to changes in production volume.
Activity Level
A measure of the volume of production or operations, often influencing variable costs and capacity planning.
Fixed Manufacturing Overhead
The consistent, non-variable costs incurred during the manufacturing process, not directly tied to production levels.
Volume Variance
The difference between the budgeted and actual volume of production, affecting fixed costs allocation.
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