Current standards:

These standards reflect the management’s anticipation of what
actual costs will be for the current period. These are the costs which the business will incur if
the anticipated prices are paid for the goods and services and the usage corresponds to that
believed to be necessary to produce the planned output. The variances arising from expected
standards represent the degree of efficiency in usage of the factors of production, variation in
prices paid for materials and services and difference in the volume of production.