1-4. ( ) Which of the following is a disadvantage of using the standards developed by a firm itself to develop a budget?

1. A firm's inefficiencies will be part of the data.
2. They are not based on realized benchmarks.
3. The expected future changes are not included in the standards.
4. The flexible-budget amounts are difficult to determine.

1-5. ( ) A $5,000 unfavorable flexible-budget variance indicates that .

1. the flexible-budget amount exceeded actual variable manufacturing overhead by $5,000
2. the actual variable manufacturing overhead exceeded the flexible-budget amount by $5,000
3. the flexible-budget amount exceeded standard variable manufacturing overhead by $5,000
4. the standard variable manufacturing overhead exceeded the flexible-budget amount by $5,000

1-6. ( ) Bekits Corporation manufactured 37,500 grooming kits for horses during March. The following fixed overhead data relates to March:

	Actual	Static Budget
Production	37,500 units	36,000 units
Machine-hours	6,100 hours	5,940 hours
Fixed overhead costs for March	$133,000	$124,740

What is the fixed overhead spending variance?

1. $3,062.5 unfavorable
2. $8,260 favorable
3. $8,260 unfavorable
4. $3,062.5 favorable