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Direct Material Price Variance
Direct material price variance is the difference between the actual cost of materials used in production and the expected (or standard) cost, indicating how effectively a company manages its resource costs.
Actual Production
Refers to the quantity of goods that have been produced within a given time frame, as opposed to planned or theoretical production levels.
Direct Labour Variance
The difference between the actual direct labor costs incurred and the standard costs for the actual production achieved.
Direct Labour Standards
Benchmarks for the amount of labor time that is expected to be necessary to produce a unit of product or to complete a process.
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