QUESTION 1 Which of the following is likely to be related to an unfavourable direct materials rate variance? Decision to purchase low quality direct materials O Poor negotiating skills of the purchasing manager O Unexpected price decrease in direct materials. Actual direct materials purchases were in larger quantities, resulting in volume discounts. QUESTION 2 The direct materials mix variance will be favourable when the flexible-budget contribution margin is greater than the actual contribution margin. the actual direct materials input mix is lower than the budgeted direct materials input mix. the actual quantity of total inputs used is greater than the flexible budget for total inputs actual unit sales are less than budgeted unit sales