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Direct 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 of material.
Malfunctioning Equipment
Equipment that is not operating correctly or as expected, often leading to operational inefficiencies or safety concerns.
Spoilage
Wasted or defective materials during the production process that cannot be repaired or sold.
Direct Labor Rate Variance
The difference between the actual cost of direct labor and the standard cost, indicating how much the actual labor rate deviates from the expected standard.
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