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Standard Cost System
A cost accounting system that utilizes standard costs for material, labor, and overhead to estimate the cost of goods produced or services rendered.
Variable Overhead Rate Variance
This refers to the difference between what the variable overhead costs were expected to be versus what they actually were, measured against the standard cost of production.
Manufacturing Overhead
The indirect factory-related costs that are incurred when a product is manufactured, including costs such as maintenance, utilities, and quality control.
Standard Costing System
An accounting method that uses standard costs for product cost planning and control, involving setting predetermined costs for manufacturing activities.
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