Indicate whether the following statements are true or false.

$$ A traditional budget provides the best format for preparing a budget performance report.

$$ A favorable direct materials price variance might lead to an unfavorable direct materials quantity variance because the company purchased inferior materials.

$$ When standard costs are used, factory overhead is assigned to products with a predetermined standard overhead rate.

$$ Price and quantity variances are normally computed for materials; efficiency and rate variances are normally computed for labor; volume variances can be computed for overhead and sales.

$$ If ending variance account balances are material, they should always be closed directly to Cost of Goods Sold.

$$ A flexible budget expresses all costs on a per unit basis, regardless of cost behavior.