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In the following illustration, structure "d" is the
Actual Direct Labour Hours
The real number of labor hours worked by employees directly involved in the production process, typically recorded after the work has been completed.
Standard Cost System
A cost accounting system that uses cost standards for materials, labor, and overhead to control actual costs and analyze variances.
Favourable Variance
A financial term referring to a situation where actual costs are less than budgeted costs, or actual revenues exceed budgeted revenues.
Variable Overhead Efficiency Variance
A measure of the difference between the expected variable overhead based on standard costs and the actual variable overhead incurred.
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