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Unformatted text preview: poor maintenance, a number of the manufacturing machines are experiencing breakdowns on a consistent basis, leading to reduced production . Or the flow of materials through the production process is impeded because of a lack of skilled labor to perform the necessary production tasks, due to a lack of planning. In both of these cases, the production department is responsible for the cause of these variances. On the other hand, overhead can also be underutilized because of a lack of sales orders. When the cause is a lack of sales orders, the responsibility rests outside the production department....
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- Fall '11
- overhead variance