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Perez Company had the following information available: Expected Costs and Selling Price Based on 5,000 Units: Variable manufacturing costs per unit $32 Fixed manufacturing costs per unit $20 Selling price per unit $70 Expected production level 5,000 units In the flexible budget at 15,000 units, what is the total manufacturing cost? A) $580,000 B) $680,000 C) $480,000 D) $780,000 Which of the following is used to develop flexible budgets? A) cost functions B) fixed overhead variances C) flexible budget variances D) static budget variances A company that has an activity-based costing system with multiple cost drivers will prepare a(n) _______ budget. A) short-range planning B) activity-based flexible C) strategic D) financial planning The activity-level variance for fixed costs equals zero when ___________. A) the actual level of output is less than the static budget level of output B) the actual level of output equals the static budget level of output C) the actual level of output is greater than the static budget level of output D) all of the above Corrao Company had a static budgeted operating income of $8.6 million. Actual operating income was $6.4 million. The flexible budget operating income at the actual level of output is $7,000,000. What is the static-budget variance of operating income? A) $2.2 million Unfavorable B) $2.2 million Favorable C) $1.6 million Favorable D) $1.6 million Unfavorable For the current year, LeBombard Company's static budget sales were $225,000. Actual sales for the current year were $220,000. Actual sales last year were $219,000. Expected sales last year were $225,000. What is the static budget variance for sales in the current year? A) $5,000 Favorable B) $6,000 Favorable C) $6,000 Unfavorable D) $5,000 Unfavorable Differences between the actual results and the flexible budget at the actual level of output achieved are _______ variances. A) flexible budget B) operating budget C) static budget D) activity budget