Chapter 3.3
1. A direct materials quantity standard generally includes an allowance for _______.
2. The _______ is computed by multiplying the difference between the actual price
and the standard price by the actual quantity of materials purchased.
3. Waste on the production line will result in an unfavorable _______.
4. A materials price variance is unfavorable if the _______ price exceeds the
_______ price.
5. A favorable materials quantity variance occurs when the actual quantity used in
production is less than the standard quantity allowed for the _______ of the period.
6. Purchase of poor quality materials may cause a favorable materials price variance
and an unfavorable _______ variance.
7. An unfavorable _______ variance can occur if workers with high hourly wage rates
are assigned to work on products with standards that assume workers have low
hourly wage rates.
8. The standard labor rate per hour defines the company‘s expected direct
