1.The correct formula for Direct Materials Quantity Variance is: A) (AH - SH) x SR B) (AP - SP) X AQ C) (AR - SR) X AH D) (AQ - SQ) X SP

2.The normal first budget prepared for a master budget is estimating: A)Production B)Expenditures C)Sales D)Income

3.

Buddy Company's direct materials budget shows the following cost of materials to be purchased for the coming three months:

		January		February		March
Material purchases		$12,040		$14,150		$10,970

Payments for purchases are expected to be made 50% in the month of purchase and 50% in the month following purchase. The December Accounts Payable balance is $6,500. The budgeted cash payments for materials in January are: