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If and
, find
and simplify.
Variable Overhead Rate
The ratio of variable overhead costs to an activity base such as units produced or direct labor-hours, used for costing purposes.
Fixed Manufacturing Overhead
Costs related to manufacturing that do not change with the level of production, such as factory rent and salaries of supervisory personnel.
Budget Variances
The differences between budgeted amounts and actual amounts.
Machine-Hours
An allocation base in cost accounting used to assign costs to products or services, based on the hours of machine operation required.
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