Evaluate the following statements regarding flexible budgeting: A. At the beginning of the year, Jones Corp. established a static budget for its manufacturing factory at 12,000 units of production. Actual production for the month of March was 12,120 units. Jones should expect its activity variance to be 1% of the static budget's total manufacturing costs. B. At the beginning of the year, Stevens Inc. estimated $1,000,000 for its total manufacturing cost at a static budget of 20,000 units. Stevens' production process is exclusively comprised of variable costs. Actual activity for the month of March was 30,000 units. Stevens will have a total variance of $500,000.

A only correct

B only correct

A&B correct

A&B incorrect