Which ONE of the following describes a variance that represents a prot shortfall? O A. Unplanned O B. Negative 0 C. Loss 0 D. Adverse Evidence cited in the section on the Behavioural Aspects of Budgets suggests that budgets can deter innovative behaviour among managers. Is the above statement true or false? O A. True 0 B. False The standard cost of direct materials is 4 per kg and the standard quantity 2kg per unit of output. The actual cost is 3.80 per kg and the actual quantity used is 2.1kg per unit. 20,000 units are produced in the period. What is the direct materials price variance? O A. 8,400 adverse O B. 8,000 favourable O C. 8,400 favourable O D. 8,000 adverse Pendennis plc had the following budget and actual figures for Product ZN6 during April: Budget Actual Output 2,200 units 2,500 units f Sales revenue 176,000 205,000 Raw materials (77,000) 22,000 metres (98,800) 28,000 metres Labour (66,000) 11,000 hours (65,000) 13,000 hours Fixed overheads (24,200) (21,400) Profit 8,800 19,800 O A. $3,000 adverse O B. 2,500 favourable O C. $2,500 adverse O D. $3,000 favourableA flexible budget is: O A. a budget that comprises variable costs only O B. a budget that can be adjusted to reflect different costs at different activity levels O C. a budget that will be changed at the end of the month to reflect the actual costs of a department O D. a budget that is reviewed on a month by month basis