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In a parallel circuit,
Variable Manufacturing Overhead
Costs that fluctuate with the volume of manufacturing activity, including supplies, utilities, and indirect labor.
Labor Efficiency Variance
The difference between the actual number of labor hours worked and the standard hours expected to complete the work, multiplied by the standard labor rate.
Variable Overhead Efficiency Variance
The difference between the actual variable overhead incurred and the expected variable overhead based on the standard cost, attributed to efficiency in using resources.
Labor Efficiency Variance
The difference between the actual labor hours used and the standard hours expected for the production level achieved.
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