6. The master budget for a merchandising firm integrates these budget EXCEPT for A. Sales budget B. Production budget Purchase budget D. Selling and administrative expenses budget. C. 7. A favourable variance for direct materials indicates that A. More materials was used during production than planned for actual output. B. Less material was used during production than planned for actual output. C. A higher price than planned was paid for materials. D. A lower price than planned was paid for materials. 8. If the actual cost is lower than the standard cost, the difference would be known as A. Adverse B. Favorable C. Negative Positive D. 9. Setting of standard cost involves A. Analysis of the historical cost experience B. Engineering studies C. Input from operating personnel D. All of the above A 10. Variance constitutes the difference between The actual manufacturing cost and the standard cost at actual level of production. B. The standard cost and the actual manufacturing cost at the standard level of production. C. The standard level of production and the standard cost at the standard level of production D. None of the above