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If the Standard to Produce a Given Amount of Product

question 149

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If the standard to produce a given amount of product is 900 units of direct materials at $11 and the actual was 800 units at $12, the direct materials quantity variance was $1,100 unfavorable.

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Definitions:

Common Fixed Expenses

Common fixed expenses are overhead costs shared across multiple segments or products of a business, like administrative salaries or building rent.

Break-Even

The point at which total costs and total revenue are equal, meaning there is no net loss or gain.

Sales Dollars

The total revenue generated from selling goods or services, measured in dollars.

Common Fixed Expenses

Expenses that do not change with the volume of production or sales and are shared among different segments or products of a business.

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