1.)

Assume that the amount of one of a company's variable expenses in its exible budget is $40,000. The actual amount of the expense is $42,000 and the amount in the company's planning budget is $41,400. The activity variance for this expense is: Multiple Choice 0 $700 U. $700 F. $1.400 F. $1,400 u. 000 Which of the following statements is true? Multiple Choice O The spending variance for a fixed expense will equal zero when the planned level of activity equals the actual level of activity. O The spending variance for a fixed expense will be favorable if the amount of the expense contained in the flexible budget is greater than the actual amount of the expense. O The spending variance for a fixed expense will be favorable if the amount of the expense contained in the flexible budget is less than the actual amount of the expense. O The spending variance for a fixed expense can be favorable or unfavorable depending on whether the actual expense is greater than or less than the planned expense