ANSER TRUE OR FALSE

_____ 3. Both variable and fixed manufacturing overhead costs are included in the manufacturing overhead budget.

_____ 4. If activity is higher than expected, total variable costs should be higher than expected. If activity is lower than expected, total variable costs should be lower than expected.

_____ 5. A revenue variance is favorable if the revenue in the static planning budget exceeds the revenue in the flexible budget.

_____ 6. A spending variance is the difference between how much a cost should have been, given the actual level of activity, and the actual amount of the cost for the period. MULTIPLE CHOICE

_____ 7. Which of the following represents the correct order in which the indicated budget documents for a manufacturing company would be prepared?