Use the following terms to complete the sentences that follow; terms may be used once, more than once, or not at all:
Static
Purchasing manager
Flexible
Favorable
Volume
Unfavorable
Spending
Debit
Production manager
Credit
Variable overhead rate
Fixed overhead budget
Variable overhead efficiency
Fixed overhead volume
Fixed overhead spending
1. A _______ budget is based on a fixed estimate of sales volume.
2. A _______ variance represents the difference between actual and expected levels of activity.
3. The _______ is typically responsible for the direct materials quantity variance.
4. The variable overhead rate variance is _______ when the actual variable overhead rate is less than the standard variable overhead rate.
5. Unfavorable variances appear as _______ entries; favorable variances appear as _______ entries.
6. The _______ variance is the difference between the number of actual direct labor hours used and the number of standard direct labor hours multiplied by the standard variable overhead rate.
7. Using less direct materials than expected results in a _______ variance.
8. The _______ is typically responsible for the direct labor efficiency variance.
9. The _______ variance is sometimes also called the denominator variance.
10. When recording journal entries, the actual cost is a _______ and the standard cost is a _______.