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Save & Exit An unfavorable activity variance for revenue indicates that activity was less than expected when the static planning budget was developed. True or False True FalseThe number of units to be produced in a period can be determined by adding the expected sales to the desired ending inventory and then deducting the beginning inventory. True or False True FalseThe labor rate variance measures the difference between the actual hourly rate and the standard hourly rate, multiplied by the standard hours allowed for the actual output. True or False True FalseHelp Save & Exit Submit A flexible budget performance report with more than one cost driver can contain activity variances but not revenue or spending variances due to the increased complexity. True or False True FalseIf demand is insufficient to keep everyone busy and workers are not laid off, an unfavorable (U) variable overhead efficiency variance often will be a result unless managers build excessive inventories. True or False True FalseFeemster Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During October, the company budgeted for 6,070 units, but its actual level of activity was 6,020 units. The company has provided the following data concerning the formulas used in its budgeting and its actual results for October: Data used in budgeting: Fixed element per Variable element month per unit Revenue $ 0 $ 31.60 Direct labor $ 0 $ 7.30 Direct materials 0 10.30 Manufacturing overhead 38 , 700 3.00 Selling and administrative expenses 25 , 500 2.50 Total expenses $ 64, 200 $ 23. 10 Actual results for October: Revenue $ 184, 595 Direct labor $ 40 , 010 Direct materials $ 58, 300 Manufacturing overhead $ 54, 275 Selling and administrative expenses $ 40, 170 The activity variance for selling and administrative expenses in October would be closest to:The direct labor budget begins with the required production in units from the production budget. True or False True FalseThe activity variance for selling and administrative expenses in October would be closest to: Multiple Choice O $125 F O $505 U O $505 F O $125 U