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The Santa Fe Company has office employees and shipping employees. A summary of their earnings and deductions for the week ended July 12, 2013, is shown below. On page 16 of a general journal, record the July 12 payroll and the entry to summarize the effect of the checks written to pay the payroll.
Sales Volume Variance
The difference between the actual quantity sold and the budgeted quantity sold, multiplied by the standard selling price per unit.
Purchasing Department
The division within a company responsible for acquiring goods and services necessary for the business operations.
Price Paid
The total monetary expenditure incurred to acquire a product or service, which includes the purchase price and any additional costs.
Materials
Physical items that are used in the production of goods and services, often classified as direct materials (used directly in the final product) and indirect materials (not directly identifiable with the final product).
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