Match the definitions shown below with the following terms (Note: There are more terms than definitions]: Terms: A. Activity Variance B. Flexible Budget E. Management by exception F. Materials price variance Materials quantity variance H. Planning budget C. Labor efficiency variance G. D. Labor Rate variance Definitions 1. Spending Variance J. Standard price per unit K. Standard quantity allowed 1. The price that should be paid for each unit of direct materials. It should reflect the final, delivered cost of those materials. 2. A report showing estimates of what revenues and costs should have been, given the actual level of activity for the period. 3. A management system in which actual results are compared to a budget Significant deviations from the budget are flagged as exceptions and investigated further. 4. The difference between a direct material's actual price per unit and its standard price per unit, multiplied by the quantity purchased. 5. The difference between the actual amount of the cost and how much the cost should have been, given the actual level of activity. 6. The difference between the actual labor-hours taken to complete a task and the standard hours allowed for the actual output, multiplied by the standard hourly labor rate. 7. The difference between the actual quantity of materials used in production and the standard. quantity allowed for the actual output, multiplied by the standard price per unit of materials. 8. The difference between a revenue or cost item in the flexible budget and the same item in the static planning budget. 9. The difference between the actual hourly labor rate and the standard rate, multiplied by the number of hours worked during the period. 10. The amount of direct materials that should be used to complete the period's actual output. It is computed by multiplying the actual number of units produced by the standard quantity per unit. Answers 2. 6. 7. 8. - 9. 10