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If the Standard to Produce a Given Amount of Product

question 149

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If the standard to produce a given amount of product is 2,000 units of direct materials at $12 and the actual was 1,600 units at $13, the direct materials quantity variance was $5,200 favorable.


Definitions:

Equity

Equity refers to fairness or justice in the way people are treated and involves ensuring equal opportunities and rights for all individuals.

Benefits Principle

A theory in taxation where taxes are apportioned according to the benefits received by taxpayers; those who benefit more from government services, pay more taxes.

Federal Government

The national government of a federal country, which holds the authority over matters that affect the country as a whole.

Horizontal Equity

The principle that individuals with similar incomes or circumstances should be taxed at the same rate.

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