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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 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. 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. 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

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