Exercise 24.1 (Static) Accounting Terminology (LO 24-1, LO24-2, LO24-3, LO24-4, LO24-5) The following are seven technical terms introduced: Spending variance Labor rate variance Labor efficiency variance Materials price variance Materials quantity variance Standard costs Volume variance Each of the following statements may or may not) describe one of these technical terms. For each statement, indicate the accounting term discussed, or answer "None" if the statement does not correctly describe any of the terms. a. The budgeted costs of producing a product under normal conditions The dollar amount associated with the difference between the actual direct labor hours b. required and the standard number of direct labor hours allowed for a given lovel of production under normal conditions c. A variance that is always favorable when actual production levels exceed normal levels d. The portion of the total materials variance caused by using more or less material than allowed for a given level of output The portion of the total overhead variance caused by incurring more overhead costs than allowed for a given level of production The portion of the total materials variance for which a company's purchasing agent is 1 often responsible The portion of the total labor variance that is related to the differences between the 9 actual hourly wages paid and the budgeted standard wage