A) The visualization shows that all the variable costs do not seem to change with activity levels. Why do we still call it a flexible budget?

B) The company considers each product line as a cost center so everything in the visualization is part of a cost center. Assuming the company believes only the variable costs (regardless of direct or indirect) are controllable by the product manager, what is the total controllable costs when the activity level is 8,000? When the product manager receives the responsibility report, they comment that the variable costs shown here are not direct costs so they are not controllable. What do you think about this comment?

80K Indirect materials (per unit) Indirect labor (per unit) utilities (per unit) 5 4 60K 3 Total fixed costs 40K 2 20K 1 0 OK 5000 9000 5000 9000 6000 7000 8000 Activity level (number of labor hours) 6000 7000 8000 Activity level (number of labor hours)