1. Multiple choice questions if you don't know the answer don't answer because I won't give points

2. short explanation

4. Which of the following items would most likely differ on the Cash Budget and the Budgeted Income Statement?

   Rent expense

   Research and development expense

   Sales Commissions expense

   Depreciation expense

   1. Which of the following is not a factor in the amount of material used in production, resulting in a direct materials price variance?

      		The quality of the material
      		The skill level of the production workers
      		The supervision provided by the production manager
      		All of the above are factors in the amount of material used in production.

   2. Purchasing a higher quality of materials than is specified by the standard will likely result in

      A favorable price variance

      An unfavorable quantity variance

      An unfavorable price variance

      Both a and b

      Which of the following is not a reason that actual direct labor costs may differ from the flexible budget amounts?

      The purchasing manager resigned and a higher-paid replacement was hired.

      After the company set the standard wage rate, the union reached an agreement that required a pay raise for all factory workers.

      Because the air conditioner in the factory was not working properly, workers did not work as efficiently in the hot afternoons as expected.

      All of the above would create a difference in actual labor costs and flexible budget amounts.

      1. Since fixed overhead does not vary with volume within the relevant range, the flexible budget will always agree with

         Actual results.

         Static budget.

         Both a and b.

         Neither a nor b.

         Normally, managers will not see many fixed overhead spending variances because

         		Many fixed costs are contracted for or known ahead of time.
         		Fixed costs vary in proportion to activity, so differences do not normally arise.
         		Most fixed costs are allocated (such as depreciation), so no differences occur.
         		None of the above