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Variable Overhead
Variable overhead costs are those expenses that fluctuate with production volume, such as utilities or materials.
Fixed Overhead
Regular, unchanged costs associated with operating a business that do not fluctuate with production levels.
Direct Labor Rate Variances
This term refers to the difference between the actual cost of direct labor and the expected (or standard) cost, used in manufacturing and budgeting.
Efficiency Variances
The differences between actual performance in terms of time or cost and the standard expected performance.
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