1. of the following is not one of the main purposes of a budget? a. To enable a flexibility of approach to company policies b. Planning and control To optimize the use of scarce resources The alignment of individual and corporate goals ufacturing 2. In a company, which budget is the first to be prepared in the budget process? The production budget The capital expenditure budget The cash flow budget C. d. b.The sales budget on budget is not derived from the a. Purchasing Volume Budget b. Direct Labor Budget 3. A Inventory Volume Budget Sales Volume Budget d. 4. When the actual cost is less than the standard cost, the difference is termed as The following information relates to product A Material (kg) a. Favorable variance b. Both a and b Adverse variance None of the above d. Cost Per Unit $69 QuantityUnit Price $20 $40 Labor (hours) Budgeted production is 1000 units. Actual production is 950 units. Actual inputs were as follows Material 2,650kg costing $63,500 Labor 1,800hours costing $35,000 5. The material price varlance is: a. $5,300 adverse b. $5,300 favorable 2,50 favorabl AC-Sc Achal unt P 6. Using the information from question the material usage variance is: a. $4,600 adverse b. $2,150 adverse c. $2,150 favorable d. $4,600 favorable 7. Using the information from question the labor rate variance is: a. $1,000 adverse b. $1,000 favorable c. 1,200 favorable d. $1,200 adverse 8. The formula for usage variance is (AQ-Sa) SP a. True False During July actual labor costs amounted to $19,800, the standard rate of pay was $4.50 per hour and the labor rate variance amounted to $225 Favorable. The actual hours worked were: 9. 4,450 a. 1,012.5 b. 4,350 C. d. 4,400 10. A manager who is responsible for only cost of company belongs to a.) Cost center C. d. Revenue center Investment center Profit center 11. Which of the following is a responsibility center? a. Expense center c. Investment center rofit center d. All of the above