Harry Blackmun, manager of the Dry Goods Department at Goodright's Grocery, has a budget of $$6,000$ per month for the current year. This budget includes the allocation of $$500$ of storewide common costs based on the square feet occupied by Dry Goods. Recently, Dry Goods expanded its total store space to include household items that had not previously been included in the store. During the current month, Mr$.$ Blackmun was over budget by $$700.$ The store manager was upset with the manager of Dry Goods and asked for an explanation.

a$)$

The budget overage may have been caused by the expansion of the Dry Goods Department. Is this statement true or false?

What budget tool could Goodright's use to better evaluate its department managers? Flexible budget or Fixed budget?