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In organizations where a majority of workers perform repetitive operations there is often a lack of
Variable Overhead
Costs that fluctuate with production volume, such as utility expenses or materials costs, which increase or decrease as production levels change.
Variable Overhead Rate Variance
The difference between the actual variable overhead incurred and the expected (or standard) variable overhead based on the predetermined rate.
Variable Manufacturing Overhead
Production costs that change in proportion to the level of production activity, including items such as indirect labor costs.
Actual Direct Labor Cost
The actual amount spent on wages for workers who are directly involved in producing goods or providing services.
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