3) The static budget is based on the production level and the flexible budget is based on the production level. A) current; expected B) expected; real C) expected; planned D) current; projected 5) A static budget variance ynfavcrable to operating income may be due to or A) yofavorable income variation; yofayorable cost variance B) yofavorabla income variation; faverable cost variance C) favorable income variation; yofavorable cost variance D) All of the above 10) The type of budget that serves as the original benchmark for evaluating performance is called a budget. A) strategic B) long range C) flexible D) static 14) The differences between the actual results and the flexible budget at the actual level of production achieved are variances. A) static budget B) activity budget| C) flexible budget D) operating budget Response: 21) Rate variations are the same as variations. Efficiency variances are the same as variances. A) expense; effective B) activity; static C) use; amount D) price; amount 23) Eagle Company had a favorable flexible budget direct material variance. In this case, it would NOT be possible for the direct material price variance to be and for the direct material quantity variance to be A) faverable; yofaverabla B) unfavourable, favorabls C) unfavourable; ynfavarable. D) favorable; faverable