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A graph showing the probability of accepting the lot as a function of the percent defective in the lot is
Variable Overhead Efficiency Variance
The difference between the actual variable overhead incurred and the standard cost of variable overhead allocated for the actual production level, often driven by efficiency in using the variable overhead resources.
Variable Overhead Rate Variance
The difference between the actual variable overhead incurred and the standard cost allocated, based on the actual amount of the allocation base used.
Supplies
Materials and items used in the daily operations of a business that do not directly become part of the final product.
Flexible Budget
A budget that modifies based on fluctuations in activity levels or volume.
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