Examlex
Consider this pair of judgments about which is smaller: "Which is smaller,a sheep or a bear?" and "Which is smaller,a mouse or a rat?" The faster response to the second question illustrates __________.
Direct Labor-Hours
The total hours of labor directly involved in producing goods, used as a base to allocate labor costs to products.
Variable Overhead Rate Variance
The difference between the actual variable overhead incurred and the standard cost of variable overhead allotted based on the activity level.
Variable Overhead Efficiency Variance
The difference between actual hours worked to produce an item and the standard hours expected, multiplied by the variable overhead rate.
FOH Volume Variance
The difference between the budgeted fixed overhead and the applied fixed overhead, which is attributed to the difference in actual and budgeted activity levels.
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