Test your knowledge of various types of variances. Match the names of the variances on the left with the corresponding definitions on the right by choosing the appropriate letter in the drop-down list in the left hand table.

	1.	Direct materials price variance	A.	Difference between the actual cost of nonvariable overheads and
				that shown in the flexed budget.
	2.	Sales price variance	B.	Difference between the profit as shown in the original budget and
				that shown in the flexed budget.
	3.	Direct labour rate variance	C.	Compares the number of hours that would be allowed for the achieved
				level of production with the actual number of hours.
	4.	Sales volume variance	D.	Difference between the actual sales revenue figure and that
				shown in the flexed budget.
	5.	Fixed overhead spending variance	E.	Compares the actual quantity of direct materials used and the quantity
				according to the flexed budget.
	6.	Direct labour efficiency variance	F.	Difference between the actual cost of direct materials used and the
				cost that was allowed given the quantity used.
	7.	Direct materials usage variance	G.	Difference between the actual cost of hours worked and the
				allowed cost.