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Sunny Skys,Inc.bought a derelict hunting lodge,which it tore down at a cost of $45,000 and replaced with a new lodge.The demolition cost should be:
Standard Quantity
This represents the expected amount of materials or inputs needed to produce a unit of product under normal conditions.
Actual Output
Actual output is the factual quantity of goods or services produced within a specified time frame, representing productivity.
Standard Price
The predetermined cost assigned to materials, labor, or overhead for the purposes of budgeting and variance analysis.
Material Price Variance
The difference between the actual cost of direct materials and the expected (standard) cost, indicating budgetary performance.
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