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Key Terms Instructions: Please define the following key terms. Show Who? What? Where? When? Why Important?
Louis XVI
Variable Overhead Rate Variance
The difference between the actual variable overhead cost incurred during a period and the standard cost that should have been incurred based on the actual activity of the period.
Materials Price Variance
The difference between a direct material’s actual price per unit and its standard price per unit, multiplied by the quantity purchased.
Standard Cost
An estimated or predetermined cost of performing an operation, producing a good, or delivering a service, used for budgeting and performance evaluation.
Variable Overhead Efficiency Variance
The difference between the actual variable overhead based on the efficient use of resources and the standard variable overhead expected.
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