Hoppy Corporation is comparing its flexible budget to the planning budget prepared at the beginning of the month. When the actual level of activity is less than the planning budget, all of the following would occur when comparing the flexible budget to the planning budget, except:

a Fixed costs should show no variances.

b Costs with both fixed and variable components would show favorable variances.

c Revenue should show an unfavorable variance.

d Variable costs should show unfavorable variances.