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Direct Labor
Direct Labor involves the wages paid to workers who are directly involved in the production of goods or the delivery of services, being a variable cost tied to production levels.
Overhead Cost Variance
The difference between the estimated overhead costs and the actual overhead costs incurred during a period.
Overhead Costs
Expenses not directly tied to the production of goods or services, such as rent, utilities, and office supplies.
Total Controllable Cost Variance
The difference between the actual controllable costs incurred and the budgeted controllable costs over a specific period.
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