The standard rate per unit that a company expects to pay for variable overhead equals the blank variable portion of the predetermined overhead rate.
Standard prices are as compared to real prices, and mathematical deviations among the 2 are termed variances. Favorable variances end result whilst real prices are much less than wellknown prices, and vice versa.Price standards specify how a whole lot must be paid for every unit of the input. Defines the quantity of direct substances that must be used for every unit of completed product, together with an allowance for regular inefficiencies, together with scrap and spoilage.
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