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A major objective of professional service organizations is to:
Variable Overhead Rate Variance
The difference between the actual variable overhead costs incurred and the standard cost expected for the actual production volume.
Direct Labor-hours
The total hours of labor directly involved in the production of goods, often used as a basis for allocating manufacturing overhead in process costing.
Variable Manufacturing Overhead Standards
Pre-established rates or quantities that are used to assign variable overhead costs to products based on levels of activity such as labor or machine hours.
Variable Overhead Rate Variance
The variance between the actual variable overhead costs that were incurred and the anticipated variable overhead calculated according to the real amount of activity.
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