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Briefly explain the confounds of history and maturation.
Standard Labour Rate
The pre-established rate per hour that a company expects to pay for direct labor.
Actual Units
The real quantity of items produced, sold, or consumed, as opposed to planned or theoretical quantities.
Variable Overhead Spending Variance
This is the difference between the actual variable overheads incurred and what was expected or budgeted, based on the actual level of production activity.
Standard Quantity
The predetermined or expected amount of materials required to complete one unit of a product, used for budgeting and costing purposes.
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