Match the term on the left with the definition on the right.

Term Definition

1. Fixed overhead volume variance a. Tells managers how much of the total variance is due to paying a different hourly wage rate than anticipated

2. Direct labor efficiency variance b. Tells managers how much of the total variance is due to using a greater or lesser amount of time being worked than anticipated

3. Practical standards c. Tells managers how much of the total variance is due to using a difference quantity of direct materials than expected

4. Standard cost d. Tells managers how much of the total variable MOH variance is due to using more or less hours of the allocation base than anticipated for the actual volume of output

5. Direct materials quantity variance e. Measures the difference between the budgeted fixed MOH costs and the standard allocated MOH costs

6. Direct labor rate variance f. Tells managers how much of the total variance is due to paying a different price than expected for direct materials

7. Variable overhead rate variance g. The budget for a single unit of product

8. Fixed overhead budget variance h. Also called the variable overhead spending variance

9. Ideal standards i. Also known as attainable standards

10. Direct materials price variance j. Standards based on conditions that do not allow for any waste in the production process

11. Variable overhead efficiency variance k. Measures the difference between the actual fixed MOH costs incurred and the budgeted fixed MOHcosts