1. A flexible budget is a budget that: A. is updated with actual costs as they occur during the period B. is updated to reflect the actual level of activity during the period. C. is prepared using a computer spreadsheet application. D. contains only variable production costs. 2. Which of the following comparisons best isolates the impact that changes in prices of input and outputs have on performance? A. static planning budget and flexible budget B. static planning budget and actual results C. flexible budget and actual results D. master budget and static planning budget 3. Marchi Family Inn is a bed and breakfast establishment in a converted 100-year-old mansion. The Inn's guests appreciate its gourmet breakfasts and individually decorated rooms. The Inn's overhead budget for the most recent month appears below: Activity level Variable overhead costs: 65 guests Supplies... Laundry Fixed overhead costs: ..$ 156 364 Utilities 250 4.480 1.330 $6.580 Salaries and wage Depreciation Total overhead cost.. The Inn's variable overhead costs are driven by the number of guests. What would be the total budgeted overhead cost for a month if the activity level is 70 guests? A. $42,460.00 B. $6,620.00 C. $7,086.15 D. $6,580.00