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Figure 26.3
Identify the labeled structure(s) in each of the following questions.
-Identify the structure(s) indicated by Label K.
Material Price Variance
The difference between the actual cost of materials used to produce a product and the standard or expected cost.
Direct Material Variances
The difference between the actual cost of direct materials used in production and the standard cost, indicating efficiency in using materials.
Favorable Variances
Variances that occur when actual costs are less than standard or budgeted costs, or actual revenues exceed expectations, benefiting the company's financial performance.
Unfavorable Variances
Situations where actual costs are higher than planned or budgeted costs, or actual revenue is lower than expected.
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