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What is a process? How is a process chosen?
Manufacturing Overhead Volume Variance
The difference between the budgeted and actual amount of manufacturing overhead costs allocated based on production volume.
Direct Labor Hours
The total time workers spend working directly on manufacturing a product or providing a service, which is often used in allocating manufacturing overhead.
Normal Capacity
The maximum production level or volume of activity that can be achieved under normal conditions by a business.
Normal Spoilage Costs
Costs associated with the expected amount of waste or inefficiency during a production process, considered a normal part of manufacturing.
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