Question: Starlight Company's static budget is based on a planned activity level of 42,000 units. At the same time the static budget was prepared, the management

Starlight Company's static budget is based on a planned activity level of 42,000 units. At the same time the static budget was prepared, the management accountant prepared two additional budgets, one based on 37,000 units and one based on 47,000. The company actually produced and sold 46,000 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 46,000 units

A budget based on 42,000 units

A budget based on 47,000 units

A budget based on 37,000 units

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