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Efficiency Variances
Refers to the differences between the actual and standard costs attributable to efficiency in using resources, often analyzed in labor and variable overhead.
Predetermined Overhead Rate
An estimated rate used to assign manufacturing overhead costs to individual units of production, based on a chosen activity base.
Denominator Level
In cost accounting, it refers to the standard quantity or activity used in calculating the predetermined overhead rate.
Variable Overhead Rate
The rate at which variable overhead costs are allocated to products, changing with the level of production.
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