Question 1
Employee theft of direct materials is likely to result in a(n)
◦ favorable materials quantity variance.
◦ unfavorable materials quantity variance.
◦ unfavorable materials price variance.
◦ favorable materials price variance.
Question 2
The direct labor flexible budget variance is
◦ solely due to what the company pays for labor.
◦ due to how efficiently employees work and how management allocates the workers to products.
◦ due to what the company pays for labor and how efficiently employees work.
◦ due to what the company pays for labor and how management allocates the labor rate.