15)Listed below are five variances (and possible causes) that are under review by management of Knox Company. Which of the following is least likely to cause the variance indicated?

The need to ship goods acquired from a distant supplier via FedEx rather than via truck; material price variance.

The need to complete goods on a timely basis during a period of high absenteeism; labor rate variance.

A work-team that is very unhappy with its supervisor; labor efficiency variance.

The need to close a plant for two days because of blizzard conditions; material quantity variance, part no. 542.

A malfunctioning piece of manufacturing equipment; labor efficiency variance.

16)A static budget:

is based totally on prior year's costs.

is based on one anticipated activity level.

is based on a range of activity.

is preferred over a flexible budget in the evaluation of performance.

presents a clear measure of performance when planned activity differs from actual activity.