Examlex
List and explain the two categories of policy evaluation.
Variable Overhead
Costs that fluctuate with the level of production or service delivery, such as utilities or raw materials.
Total Overhead Variance
The difference between the actual overhead incurred and the standard overhead allocated for the actual production achieved.
Labor Price Variance
The difference between the actual cost of direct labor and the standard cost, reflecting the variance in wages paid.
Direct Material Cost
The cost of raw materials and components that are directly used in the production of a product.
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