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Organization development appears to be currently in a state of flux.
Labor Efficiency Variance
The difference between the actual labor-hours taken to complete a task and the standard hours allowed for the actual output, multiplied by the standard hourly labor rate.
Standard
A benchmark or guideline used to measure or set the quality, quantity, or value of products or processes.
Variable Overhead Efficiency Variance
The difference between the actual level of activity (direct labor-hours, machine-hours, or some other base) and the standard activity allowed, multiplied by the variable part of the predetermined overhead rate.
Predetermined Overhead Rate
An estimated rate used to allocate manufacturing overhead costs to individual units of production, based on activity levels such as labor hours or machine hours.
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