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The adhocracy emphasizes centralized decision making.
Predetermined Overhead Rate
A rate used to allocate manufacturing overhead costs to products or job orders, calculated at the start of the fiscal year based on estimated costs and activities.
Labor-Hour
A measure of the amount of work or labor time required or used to produce a good or service.
Variable Overhead Efficiency Variance
The difference between the actual variable overhead incurred and the standard cost of variable overhead that should have been incurred based on the efficiency of operations.
Favorable
An accounting term referring to actual results being better than projected or budgeted figures, often used in the context of variances.
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