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main components of materials variances interrelated in a flexible budget?

main components of materials variances interrelated in a flexible budget?
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Yes, in a flexible budget, the main components of material variance are interrelated. One variance is linked to another and therefore they should be handled together and not in isolation. Say for examply if we need a given quanity of units of a particular raw material for producing a set number of finished products. Now if there is an availability of a higher quality raw material and if we use that for our production process then we will need to use less units as compared to previous raw materials for producing same number of Finished goods. Thus reducing actual units results in Favorable Quantity variance but at the same time, better quality raw material will be costly than the normal one as a result of which Material price variance will be Unfavorable. So we can see the interrelation between material variances in a flexible budget.

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