Questions: 1. What is a flexible budget and how does it differ from a static planning budget? 2. Why is it difficult to interpret a difference between how much expense was budgeted at the beginning of the period and how much was actually spent? 3. What does a flexible budget enable that a simple comparison of the planning budget to actual results does not do? 4. What are separate price and quantity variances computed? 5. If the materials price variance is favorable but they materials quantity variance is unfavorable, what might this indicate? 6. What effect, if any would you expect poor quality materials to have on direct labor variances