Graded Homework

remains the same despite changes in the level of activity.
occurs at various times during the year.
varies in total in proportion to changes in the level of activity.
may or may not be incurred, depending on management’s discretion.

The static budget contains only fixed costs, while the flexible budget contains only variable costs.
The static budget is prepared for a single level of activity, while a flexible budget is adjusted for different activity levels.
The static budget is constructed using input from only upper level management, while a flexible budget obtains input from all levels of management.
The static budget is prepared only for units produced, while a flexible budget reflects the number of units sold.

$2.78
$2.86
$3.10
$3.38

$6,990 Favorable
$8,200 Favorable
$6,990 Unfavorable
$8,200 Unfavorable

$7,500 Favorable
$10,000 Favorable
$7,500 Unfavorable
$10,000 Unfavorable