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Figure 36-6
-In Figure 36-6, which point represents equilibrium at the lowest exchange rate?
Actual Direct Labor Cost
The total expense of labor directly involved in the manufacturing of a product, excluding indirect costs such as supervisory personnel.
Variable Overhead Rate Variance
The difference between the actual variable overhead incurred and the expected (or standard) variable overhead based on the actual level of activity.
Variable Overhead
Costs that fluctuate with production output levels, such as utilities or indirect materials, but are not directly tied to specific units produced.
Variable Overhead Rate Variance
The difference between the actual variable overhead costs and the standard variable overhead costs allocated based on a predetermined rate.
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