a) When comparing the Static Budget to the Flexible Budget for Fixed Costs, there is no variance (Zero), WHY? HINT: To answer this question, review the concepts of flexible budgeting and the concepts for how fixed costs behave on a total basis when volume increases or decreases.

b) Pretend that a company has a favorable Materials Price Variance but, at the same time also has an unfavorable Materials Usage Variance. Is it possible that these two variances may be related (connected) and if, yes, how?