Question: State whether the following statements are true or false. If false, explain why. (a) Favourable cost variances are where actual costs are less than standard

State whether the following statements are true or false. If false, explain why.

(a) Favourable cost variances are where actual costs are less than standard costs.

(b) Flexing the budget means adjusting the budget to take into account the actual prices incurred.

(c) Price and quantity variances are the main constituents of the overall cost variances.

(d) The direct materials price variance is: (standard price per unit of material x actual price per unit of material) x actual quantity of materials used.

(e) The direct labour quantity variance is: (standard price of labour hours for actual production x actual price of labour hours used) x standard labour price per hour.

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