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Rotate the axes so that the new equation contains no xy-term. Discuss the new equation.
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Variable Overhead Rate Variance
The difference between the actual variable overhead incurred and the expected variable overhead based on standard cost.
Variable Manufacturing Overhead
Costs in the manufacturing process that change with the level of production output, such as utilities and materials used in production.
Last Month
Refers to the period of time from the first to the last day of the month immediately preceding the current month.
Variable Overhead Efficiency Variance
The difference between the actual hours taken to produce goods and the standard hours expected, multiplied by the variable overhead rate.
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