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Values do not simply appear they evolve.
Manufacturing Overhead
Consists of indirect factory-related costs that are incurred when producing a product, such as maintenance, utilities, and salaries of supervisors.
Applied
The method of assigning or allocating overhead costs to specific products or jobs based on a predetermined rate.
Fixed Manufacturing Overhead
Costs incurred during the production process that do not vary with the level of production, such as rent for factory buildings, salaries of plant managers, and depreciation of manufacturing equipment.
Budget Variance
The variance between what was expected to be spent or earned, according to the budget, and the real amount that was spent or received.
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