​ *Actual Hours Are Equal to Standard Hours for Units Produced.​

question 161

Multiple Choice

​
*Actual hours are equal to standard hours for units produced.​
-Morocco Desk Co. purchases 6,000 feet of lumber at $6 per foot. The standard price for direct materials is $5. The entry to journalize the purchase and unfavorable direct materials price variance is

---

Definitions:

Fixed Costs

Costs that do not vary with the level of production or sales, such as rent, salaries, and insurance expenses.

Cash Break-Even

A financial metric indicating the point at which a company's cash expenses equal its cash revenues, excluding non-cash expenses.

Variable Cost

A cost that varies with the level of output or production, such as raw materials and labor expenses.

Fixed Costs

Costs that do not vary with the level of production or sales, such as rent, salaries, and insurance, which remain constant regardless of the company's output.