Examlex
What is conduction?
Variable Overhead Rate Variance
The difference between the actual variable overhead incurred and the expected (standard) cost based on the actual level of activity.
Materials Price Variance
The difference between the actual cost of direct materials and the standard cost, multiplied by the actual quantity of materials purchased.
Labor Rate Variance
The difference between the expected cost of labor per unit of production and the actual cost, often used to identify efficiency and wage rate changes.
Variable Overhead Efficiency Variance
The difference between the actual variable overhead incurred and the standard cost allocated for the actual production volume, resulting from efficiency in variable overhead resource usage.
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