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Jenny spends 32 hours a week, 50 weeks a year, operating a DVD rental store that she owns.She also owns a music store in another city that is operated by a full-time employee.Jenny spends 140 hours per year working at the music store.She elects not to group them together as a single activity under the "appropriate economic unit" standard.
Units Produced
The total number of finished items or products created by a production process or manufacturing operation.
Variable Factory Overhead Controllable Variance
The difference between the actual variable overhead costs and the budgeted costs that management could control.
Standard Factory Overhead Rate
A rate used to allocate factory overhead costs to products based on expected factory activity.
Machine Hour
Refers to the total number of hours a piece of machinery or equipment is actually used in production, often used in allocating manufacturing costs based on machine hours.
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