1) Which Direct material variance compares the actual cost to the standard cost?

A) Price variance

B) Quantity variance

C) Flexible Budget Variance

D) Sales volume variance

2) Which budget is the first in a Master Budget?

A) Production Budget

B) Direct matrials Budget

C) Operating Costs Budget

D) Sales Budget

3) In the flexible budget performance report, which variances are based only on the sales volume differences?

A) Flexible Budget Variance

B) Sales Volume

C) Price variance

D) Quantity variance

4) The Direct Materials Quantity Variance tells us whether we controlled ___________ well.

A) Price per unit of materials

B) Quantity of materials used

C) Rate we paid our employees

D) How employees used their hours worked