Prevlar$$s budget for variable overhead and fixed overhead revealed the following information for an anticipated $41,300$ hours of activity: variable overhead, $$413,000$; fixed overhead, $$632,500.$

The company actually worked $44,300$ hours and actual overhead incurred was: variable, $$424,500$; fixed, $$634,000.$

Required:

Compute the company's total cost variance for variable overhead and fixed overhead if the firm uses a static budget to help assess performance.

Compute the company's total cost variance for variable overhead and fixed overhead if the firm uses a flexible budget to help assess performance.

Which of the two budgets $($static or flexible$)$ is preferred for performance evaluations?