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Which of the following is not correct about the pyramids?
Material Quantity Variance
The difference between the actual quantity of materials used in production and the standard quantity expected, multiplied by the standard cost per unit.
Labor Rate Variance
The difference between the actual cost of labor and the budgeted or standard cost, attributable to paying a higher or lower wage rate than anticipated.
Variable Overhead
Costs of production that fluctuate with the level of output, such as utilities or raw materials.
Direct Labor-hours
Represents the total hours worked directly on the production of goods, important for calculating the labor cost per unit.
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