Fill in the blanks

1. When considering budgets and standards, a___ is expressed as a unit amount, whereas a

___ is expressed as a total amount.

2. Standards representing optimum performance under perfect operating conditions are

called ___ standards, but most companies use ___ standards, rigorous but attainable.

3. In developing a standard cost for direct materials used in making a product,

consideration should be given to two factors:(1) ___ per unit of direct materials and (2) the

___ of direct materials to produce one unit of product.

4. The difference between actual quantity of materials times the standard price and

standard quantity times the standard price is the materials ___ variance.

5. The difference between actual hours times the actual pay rate and actual hours times the

standard pay rate is the labour ___ variance.

6. The standard number of hours allowed times the predetermined overhead rate is the

amount of ___ to the products produced.

7. If the actual direct labour hours worked is greater than the standard hours, the labour

quantity variance will be ___, and the labour rate variance will be ___ if the standard rate

of pay is greater than the actual rate of pay.

8. In using variance reports, top management normally looks for ___ variances.