1. What is the result when the quantity of materials used is less than the standard quantity?

Multiple Choice

• An unfavorable materials price variance

• A favorable materials usage variance

• An unfavorable materials usage variance

• A favorable materials price variance

2. Which manager is usually held responsible for materials usage variances?

Multiple Choice

• Purchasing agent

• None of these answers is correct.

• Production supervisor

• Marketing manager

3. Flexible budget amounts for variable costs and revenues come from multiplying standard per unit amounts by the planned volume of production.

True

False