Which of the following statements is true?

Multiple Choice

• The activity variance for a variable expense will usually equal zero. Incorrect

• The activity variance for a variable expense will be favorable if the actual level of activity is greater than the planned level of activity.

• The activity variance for a variable expense will be favorable if the actual level of activity is less than the planned level of activity.

• The activity variance for a variable expense can be favorable or unfavorable depending on whether the actual expense incurred is greater than or less than the planned expense. incorrect