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Actual Hours
The total time spent on a specific task or job by workers, typically measured in hours.
Variable Overhead Efficiency Variance
The difference between the standard cost of variable overhead allocated to production and the actual variable overhead incurred, based on the efficient use of the allocation base, such as labor-hours.
Standard Activity
A benchmark level of activity or performance against which actual outcomes can be measured.
Predetermined Overhead Rate
An estimated rate used to allocate manufacturing overhead to products or job orders, calculated before the period begins based on expected costs and activity levels.
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