1. The quantity of DM purchased is the same as the DM used most often with ___________ producers. However, when the quantity of materials purchased is different than the quantity of materials used, we use _____________________________________to compute the price variance, and ______________________________________ to compute the quantity variance. In addition, the DM price and quantity variances will no longer___________to the flexible budget variance. However, we can still use the same formulas listed above to find the individual variances.

2. What should be done with the variances once they are calculated?

3. To investigate manufacturing cost variances, the company needs to consider the actual number of units ______________________, not the number of units sold.