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Direct Labor Variances
The differences between the budgeted and actual costs of direct labor used in production.
Direct Labor
The labor cost directly associated with the production of goods or services, including wages for workers who physically produce a product.
Fixed Overhead Budget Variance
The difference between the fixed overhead costs that were budgeted and the actual fixed overhead costs incurred.
Fixed Manufacturing Overhead
Costs that remain constant regardless of the level of production or sales volume, such as salaries of supervisors and rent for factory premises.
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