Question: Spark Company's static budget is based on a planned activity level of 36,000 units. At the same time the static budget was prepared, the management

Spark Company's static budget is based on a planned activity level of 36,000 units. At the same time the static budget was prepared, the management accountant prepared two additional budgets, one based on 31,000 units and one based on 41,000. The company actually produced and sold 40,000 units. In evaluating its performance, management should compare the company's actual revenues and costs to which of the following budgets?

A budget based on 40,000 units
A budget based on 36,000 units
A budget based on 31,000 units
A budget based on 41,000 units

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