Once Equivalent Units Are Calculated for Materials, This Number Will

question 54

True/False

Once equivalent units are calculated for materials, this number will also be used for direct labor and factory overhead.

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Definitions:

Direct Materials Quantity Variance

The difference between the actual quantity of materials used in production and the standard amount expected, multiplied by the standard cost per unit.

Standard Materials Cost

The pre-determined cost of materials that should be consumed under efficient operating conditions.

Material Used

The raw materials consumed in the manufacturing process to produce goods.

Produced Units

The total number of items manufactured or produced by a company within a specific period.