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The supervisor can benefit from the entire work group's creativity by:
Direct Materials Purchases Variance
The difference between the actual cost of materials purchased and the expected cost at standard prices.
Direct Labor-Hours
An alternative term for direct labor-hour, referring to the labor time spent by employees directly on manufacturing a product.
Materials Price Variance
The difference between the actual cost of materials purchased and the expected (standard) cost times the actual quantity of materials used.
Direct Materials Purchases Variance
The difference between the budgeted cost of materials that should have been purchased for the production volume and the actual cost of materials purchased.
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