A static budget report should be used when the actual level of activity is materially different from the master budget activity level. may be appropriate in evaluating a manager's effectiveness in controlling costs when the behavior of the costs in response to changes in activity is fixed. shows costs at only 2 or 3 different levels of activity. is appropriate in evaluating a manager's effectiveness in controlling variable costs. A static budget is appropriate in evaluating a manager's performance if the company is a not-for-profit organization. actual activity closely approximates the master budget activity. the company prepares reports on an annual basis. actual activity is less than the master budget activity. If costs are not responsive to changes in activity level, then these costs can be best described as variable. mixed. fixed. flexible. The master budget of Vaughn Manufacturing shows that the planned activity level for next year is expected to be 50000 machine hours. At this level of activity, the following manufacturing overhead costs are expected: A flexible budget for a level of activity of 60000 machine hours would show total manufacturing overhead costs of $1512000.$1410000.$1656000.$1692000.