10 Which of the following statements is true? activity is higher than expected total fixed costs should be higher than expected. I civity is lower than expected, total fixed costs should be lower than expected Fixed costs should not be included in a flexible budget because they do not change when the level of activity changes. C A revenue variance is favorable if the actual revenue is greater than the revenue in the master (static planning) budget. A spending variance is the difference between the amount of the cost in the master (static planning budget and the amount of the cost in the flexible budget. E To help assess how well a manager has controlled costs, actual costs should be compared to what the costs should have been for the actual level of activity. 11 Grant Corporation's flexible budest cost formula for utilities, a variable cost, is $0.60 per unit of output. The company's performance report for last month shows a $800 unfavorable spending variance for utilities r ov o st B If 8,000 units of output were produced last month, then the actual variable P incurred for utilities for the month must have been: $ 4,000 S 4,800 $ 3,360 $ 5,600 E None of the above C D