If the Standard to Produce a Given Amount of Product

question 63

True/False

If the standard to produce a given amount of product is 1,000 units of direct materials at $11 and the actual is 800 units at $12, the direct materials quantity variance is $2,200 unfavorable.

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Definitions:

Single-Step

A simplified method used in income statement preparation that aggregates all revenues and subtracts all expenses to calculate net income.

Multiple-Step

A detailed income statement format that separates operational revenue and expenses from non-operational ones to highlight core business profitability.

Statement Of Income

A statement of income is a financial document that summarizes a company's revenues, expenses, and profits or losses over a specific time period.

Freight In

The cost associated with transporting goods into a business, included as part of the inventory cost.