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Let , where g is differentiable at (0,0).
Variable Overhead Rate Variance
The difference between actual variable overhead costs incurred and the standard variable overhead costs expected for the actual production level.
Fixed Manufacturing Overhead Budget Variance
The discrepancy between the budgeted fixed overhead costs and the actual fixed overhead incurred during production.
Fixed Manufacturing Overhead Volume Variance
The difference between the budgeted and actually applied fixed manufacturing overhead, based on standard costs for a given period.
Fixed Overhead Budget Variance
The difference between actual fixed overhead costs and the budgeted or expected fixed overhead costs.
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