Spending variances are calculated by comparing:

multiple choice $1$

the amounts in the flexible budget to the standard actual amounts.

the amounts in the planning budget to the actual amounts.

the amounts in the flexible budget to the actual amounts.

the amounts in the flexible budget to the amounts in the planning budget.

Which of the following statements is true?

multiple choice $2$

If actual revenue is greater than the revenue in the flexible budget, then the variance is favorable; however, if an actual expense exceeds the amount in the flexible budget, then the variance is unfavorable.

If actual revenue is greater than the revenue in the flexible budget, then the variance is unfavorable; however, if an actual expense exceeds the amount in the flexible budget, then the variance is favorable.

If actual revenue is greater than the revenue in the flexible budget, then the variance is favorable; furthermore, if an actual expense exceeds the amount in the flexible budget, then the variance is also favorable.

If actual revenue is greater than the revenue in the flexible budget, then the variance is unfavorable; furthermore, if an actual expense exceeds the amount in the flexible budget, then the variance is also unfavorable.