A direct materials flexible budget variance can be broken down into a price variance and a quantity variance.

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This statement is true. The flexible budget variance for direct materials can be separated into two components: price variance and quantity variance. The price variance reflects the difference between the actual price paid for materials and the expected (budgeted) price for those same materials. The quantity variance, on the other hand, reflects the difference between the actual quantity of materials used in production and the expected (budgeted) quantity of materials that should have been used. These variances can help managers identify the root causes of cost overruns or cost savings in their direct materials costs.

A Direct Materials Flexible Budget Variance Can Be Broken Down