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Mach demonstrated that:
Average Cost
A financial metric calculated by dividing the total cost of goods available for sale by the total number of items available for sale, used to determine the profitability of sales.
Fixed Overhead Volume Variance
The difference between the budgeted and actual fixed overhead costs, attributed to variations in the number of units produced.
Standard Fixed Manufacturing Overhead Rate
A predetermined rate used to assign fixed manufacturing overhead costs to products based on a consistent activity base.
Fixed Overhead Budget Variance
The difference between the actual fixed overhead costs incurred and the budgeted fixed overhead costs.
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