First Question

A favourable materials unit costs variance could be due to:

a) Inferior quality materials being used

b) Exchange rate depreciation if materials are imported

c) More wastes of materials consumed

d) Higher wage costs

Second question

In the VMYP method, variances are calculated by

a) difference between actual flexible budget (V,M,Y or P) and actual

b) all the answers are correct

c) difference between actual flexible budget (V,M,Y or P) and previous flexible budget (V,M,Y or P)

d) difference between budget and actual