1) A favourable variance indicates that A) the actual costs are less than the budgeted costs B) the actual revenues are less than the budgeted revenues C) the actual units sold are less than the budgeted units D) the budgeted contribution margin is more than the actual amount 2 A budget that is adjusted in accordance with changes in actual output is called A) a balanced budget B) a cast budget C) a fiexible budzet D) a trial balance budget E) a static budget. A) the master budect variances B) on areas where performance faits to meet expectations. C favourable variances D) untavourable variances 4 exceptionat results General insurance company had a static budgeted operating income of $4.6 24 million; however, acrual income was $50 million. What is the static budect variance of operating income? A) 51,000,000 favourabie B) $1,000,000 untavourabie C) 51,600,000 tavourable D) 55,000,000 tewourable C) $1,600,000 untavpurable 5. Which of the following items will be same for a flexible budget and a master A) total variable cost B) total expected fixed costs C) total contribution martin D) total expected revenues A packaging company produces cardboard boxes in an autornated process. The required direct materiais costs $030 per unit. Fixed manufacturing overhead costs are budgeted at 524,000 per month and are allocated based on units of production. The budgeted contribution margin per unit is 50.85 , and administration fixed costs are budgeted at 57,500 per month. What is the flexible: budget amount for operating income for 40,000 and 20,000 units, respectively? A) $26,000,520,000 b) $36,000,5$0,000 Q) $40,000;$34,000 D) 544,000,5,4,000 4,52,500,614,4900 7 An efficiency wariance refiects thie difference between B) actual input quartities used in the last period and current period B) an actual input quantity ahd a budgeted input quantify C) an actual input quantity used in a company and its moin competitors D) a standard input quantity in a compary and its inain convetivars 8 If a purchasing agent is able to negotiate a price lower than that set by the current budget by purchasing direct materials of similar quality A) a reduction in customer service costs will result. Bl the effect on the direct materiais efficiency variance will be favourable. B) efficiencyrate: C) goal achievement rate. D) standard production rate. E) variance rate