Question

fill in the blanks.

1. a direct materials quantity standard generally includes an allowance for

---------

1. the --------- is computed by multiplying the difference between the actual

price and the standard price by the actual quantity of materials purchased.

1. waste on the production line will result in an unfavorable ---------
2. a materials price variance is unfavorable if the --------- price exceeds the

---------
price.

1. a favorable materials quantity variance occurs when the actual quantity used

in production is less than the standard quantity allowed for the --------- of the
period.

1. purchase of poor quality materials may cause a favorable materials price

variance and an unfavorable --------- variance.

1. an unfavorable --------- variance can occur if workers with high hourly wage

rates are assigned to work on products with standards that assume workers
have low hourly wage rates.

1. the standard labor rate per hour defines the companys expected direct

---------
per hour, including employment taxes and fringe benefits.

1. a company has a standard cost system in which fixed and variable

manufacturing overhead costs are applied to products on the basis of direct
labor - hours. a fixed --------- variance will not necessarily occur in a month in
which production volume differs from sales volume.

Explanation:

These questions relate to standard costing concepts, focusing on material and labor variances, standard allowances, and overhead application. Each blank is filled based on core definitions in cost accounting.

Answer:

1. normal waste (or scrap, spoilage)
2. materials price variance
3. materials quantity variance
4. actual; standard
5. actual output
6. materials quantity
7. labor rate
8. labor cost
9. overhead spending (or budget)