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In addition, large buying organizations increasingly are demanding that their suppliers become certified through third-party organizations, such as ____________ certification or _______________ National Quality Awards.
Variable Overhead
Costs that fluctuate with production volume, such as utility expenses or materials costs, which increase or decrease as production levels change.
Variable Overhead Rate Variance
The difference between the actual variable overhead incurred and the expected (or standard) variable overhead based on the predetermined rate.
Variable Manufacturing Overhead
Production costs that change in proportion to the level of production activity, including items such as indirect labor costs.
Actual Direct Labor Cost
The actual amount spent on wages for workers who are directly involved in producing goods or providing services.
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