Use the following terms to complete the sentences that follow; terms may be used once, more than once, or not at all.
static
flexible
spending
production manager
variable overhead rate
variable overhead efficiency
fixed overhead spending
purchasing manager
favorable
unfavorable
debit
credit
fixed overhead budget
fixed overhead volume
A_______ budget is based on a fixed estimate of sales volume.
A ________ variance represents the difference between actual and expected levels of activity
The _______ is typically responsible for the direct materials quantity variance
The variable overhead rate variance is _______ when the actual variable overhead rate is less than the standard variable overhead rate.
Unfavorable variance appear as _________ entries; favorable variances appear as ______entries
The ________ variance is the difference between between the number of actual direct labor hours used and the number of standard direct labor hours multiplied by the standard variable overhead rate.
Using less direct materials than expected results in a ____ variance.
The _________ is typically responsible for the direct labor efficency variance.
The _________ variance is sometimes also called the denominator variance
When recording journal entries, the actual cost is a ______ and the standard cost is a ________