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Encoding can be defined as
Actual Overhead
Actual overhead refers to the real costs incurred for overhead expenses, such as utilities, rent, and administrative costs, during a given period.
Direct Materials Price
The cost per unit of raw materials that are directly traceable to the production of goods.
Direct Labor Rate Variances
The difference between the actual cost of direct labor and the expected (or standard) cost, used in variance analysis to monitor labor costs.
Budgeted Standards
Budgeted standards represent targeted financial goals or benchmarks that a company aims to achieve within a certain period, often used in performance assessment and planning.
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