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Labor Efficiency Variance
The difference between the actual hours worked and the standard hours expected, multiplied by the standard hourly wage rate.
Materials Quantity Variance
The difference between the actual quantity of materials used in production and the expected quantity, multiplied by the standard cost per unit.
Variable Overhead Efficiency Variance
The difference between the actual variable overhead incurred and the standard cost allocated for the actual production achieved.
Labor Rate Variance
The difference between the actual cost of direct labor and the expected (or budgeted) cost, based on standard rates and actual hours worked.
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