b. Analyze the activity variances and the flexible budget variances. Activity variances: The activity variance shows a Answer result simply due to Answer volume than budgeted. The company budgeted production of Answer cases but produced Answer cases. This means that costs were Answer than budget simply due to Answer variable costs based on Answer production volume. Flexible budget variances: The flexible budget variance was Answer by $ Answer . This was due to costs for direct materials and variable overhead which were Answer budget. Direct labor and fixed overhead costs were Answer budget but not enough to offset the manufacturing costs that were Answer budget. Overall, the variance was Answer by $ Answer , made up of a Answer activity variance of $ Answer offset by an $ Answer Answer flexible budget variance. This means that costs were down due to lower volumes, but at an activity level of 9,500 units, costs should have been $ Answer . The overall Answer variance of $ Answer should be investigated