A controller has prepared a flexible budget for the year just ended, adjusting the original static budget for the unexpected large increase in the volume of sales. The costs are mostly variable. The controller is pleased to note that both actual revenues and actual costs approximated amounts shown on the flexible budget. If actual revenues and actual costs are compared with amounts shown on the original (static) budget, what variances would arise? Both revenue variances and cost variances would be favorable. Both revenue variances and cost variances would be unfavorable. Revenue variances would be unfavorable and cost variances would be favorable. Revenue variances would be favorable and cost variances would be unfavorable