4) Petrus Framing's cost formula for its supplies cost is $2,300 per month plus $6 per frame. For the month of March, the company planned for activity of 861 frames, but the actual level of activity was 856 frames, The actual supplies cost for the month was $7,790. The activity variance for supplies cost in March would be closest to: A) $324 U B) $30 F C) $324 F D) $30 U 5) Dermody Snow Removal's cost formula for its vehicle operating cost is $2,850 per month plus $317 per snow-day. For the month of December, the company planned for activity of 16 snow-days, but the actual level of activity was 14 snow-days. The actual vehicle operating cost for the month was $7,640. The spending variance for vehicle operating cost in December would be closest to: A) $282 U B) $282 F C) $352 U D) $352 F 6) If activity is higher than expected, total fixed costs should be higher than expected. If activity is lower than expected, total fixed costs should be lower than expected. A) True B) False 7) In a flexible budget, when the activity declines, the total variable cost also declines. A) True B) False 8) A budget that is based on the actual activity of a period is known as a: A) continuous budget. B) flexible budget. C) static budget. D) master budget