1. Explain primary reasons why actual direct materials cost for a given period would be different from direct materials cost contained in the master (static) budget that was prepared before the start of the period.
2. Verbatim Company's budget for last year included $80,000 for variable costs. The total actual variable costs for the period were $72,000. Can we say that the plant manager has done a good job in controlling these costs if actual production was 80 percent of budgeted production?