please answer all the following questions:

Standard costs offer a number of advantages to an organization:

a. They facilitate ________________ planning.

b. They promote greater economy by making employees more _________, ____________

c. They are useful in setting ______________.

d. They contribute to management control by providing a basis for ______________of ____________ control.

e. They are useful in highlighting ______________ in management by exception.

f. They simplify costing of __________ and reduce _________ costs.

Setting Standard Costs.

1. Companies set standards at one of two levels:

a. ___________ or

b. ____________.

2. Ideal standards represent optimum levels of performance under ___________operating conditions.

3. Normal standards represent efficient levels of performance that are attainable under _____________ operating conditions.

4. Most companies that use standards set them at a ____________ level.

5. The direct materials price standard should be based on the delivered cost of __________ __________

6. The direct materials quantity standard should establish the _____________ ____________ plus an allowance for unavoidable waste and normal spoilage.

7. The direct labor price standard should be based on _____________ wage rates and anticipated adjustments such as cost of living adjustments (COLAs) as well as employer payroll taxes and fringe benefits.

8. The direct labor quantity standard should be based on ____________ production time plus an allowance for rest periods, cleanup, machine setup, and machine downtime.

9. For manufacturing overhead, a standard ______________ overhead rate is used. It is based on an expected standard activity index such as standard direct labor hours or standard machine hours.

10. The total standard cost per unit is the sum of the ___________ costs of direct ___________, direct _________, and _________ __________.

C. Analyzing and Reporting Variances from Standards.

1. One of the major management uses of standard costs is to identify _________________ from standards. _____________ are the differences between total actual costs and total standard costs.

a. Variances are expressed in total dollars and not on a per unit basis.

b. When actual costs exceed standard costs, the variance is ____________.

c. If actual costs are less than standard costs, the variance is ___________.

2. Direct materials variances.

a. (Actual Quantity X Actual Price) (Standard Quantity X Standard Price) = ___________ Materials Variance (TMV).

b. (Actual Quantity X Actual Price) (Actual Quantity X Standard Price) = Materials ___________ Variance (MPV).

c. (Actual Quantity X Standard Price) (Standard Quantity X Standard Price) = Materials _______________ Variance (MQV).

3. Direct labor variances.

a. (Actual Hours X Actual Rate) (Standard Hours X Standard Rate) = __________ Labor Variance (TLV).

b. (Actual Hours X Actual Rate) (Actual Hours X Standard Rate) = Labor ____________ Variance (LPV).

c. (Actual Hours X Standard Rate) (Standard Hours X Standard Rate) = Labor ____________ Variance (LQV).

4. Manufacturing overhead variance.

a. Actual Overhead Overhead Applied = ____________ Overhead Variance. (Overhead applied is based on standard hours allowed).