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Efficiency Variance
A metric used to measure the difference between the actual use of resources and the standard expected use of resources in the production process.
Variable Overhead
Costs that change in proportion to the activity or volume of production but are not directly associated with the production of a specific unit, such as utilities.
Direct Labour Hours
The total hours worked by employees that are directly involved in the production process.
Factory Overhead Rate
A calculation used to assign manufacturing overhead costs to individual units of production, based on a certain activity base.
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