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You take Mrs. Main's temperature at 7:00 a.m.; it reads 97.8 °F. At 3:00 p.m., you take her temperature again; it reads 99 °F. How do you account for the difference?
Machine Hours
A measure of the amount of time a machine is operated, used as a basis for allocating factory overhead costs to products.
Standard Cost
A predetermined cost of manufacturing a product or performing a service, used as a benchmark to measure performance.
Direct Labor
The cost of the work performed by employees directly involved in manufacturing a product or providing a service.
Time Variance
The gap between the time actually needed to accomplish a task and the time that was anticipated for it.
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