1. When actual revenues exceed budgeted revenues, a favorable variance arises. a. True b. False N 2. One advantage of using standard times to develop a budget is they are simple to compile, are based solely on the past actual history, and do not require expected future changes to be taken into account. a. True b. False 3. The planning of fixed overhead costs differs from the planning of variable overhead costs in terms of timing. a. True b. False raise The flexible budget enables to highlight the differences between budgeted costs and budgeted quantities versus actual costs and actual quantities for the budgeted output level. a. True b. False 5. The main difference between variable costing and absorption costing is the way in which fixed manufacturing costs are accounted for. a. True b. False