The basic concept that both parties to a contract should have agreed to the same terms is referred

Machine Builders Inc. adopted a standard cost system several years ago that it uses in conjunction with its process cost system. The per-unit standard costs for direct materials and direct labor for its single product are as follows:

Materials:(7 kilograms × $10 per kilogram)$70 Labor:(7 hours × $17 per hour)$119 All materials are issued at the beginning of processing. The operating data shown below were taken from the records for July: In-process beginning inventory none In-process ending inventory—90% complete as to labor 1,100unitsUnits completed during the month 7,300unitsBudgeted output 8,100unitsPurchases of materials, in kilograms (AQ) 34,000 Total actual labor costs incurred$531,000 Direct labor hours worked (AQ) 34,000hoursMaterials purchase-price variance$2,300unfavorableIncrease in materials inventory in July 1,600kilogramsBeginning inventory of materials 0kg. The direct materials usage variance for July, to the nearest dollar, was:

IRS or state liens for income taxes are ___________________.

Fill in the blank(s) with the appropriate word(s).