Which of the following statements is true?

Multiple Choice

The spending variance for a fixed expense will equal zero when the planned level of activity equals the actual level of activity.

The spending variance for a fixed expense will be unfavorable if the amount of the expense contained in the flexible budget is greater than the actual amount of the expense.

The spending variance for a fixed expense will be unfavorable if the amount of the expense contained in the flexible budget is less than the actual amount of the expense.

The spending variance for a fixed expense can be favorable or unfavorable depending on whether the actual expense is greater than or less than the planned expense.