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Favorable
A term used in accounting and finance to indicate that actual costs were lower than planned or budgeted costs.
Standard Cost System
An accounting system that uses standard costs for products or services for the purpose of controlling costs and assessing operational performance.
Standard Direct Labor-Hours
The estimated amount of labor hours required to produce a unit of product, used in budgeting and variance analysis.
Denominator Level
The activity level used to compute a predetermined overhead rate, often reflecting capacity or expected usage.
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