true/false

1. Lax standards make allowances for normal material waste and spoilage.

2. The sales volume variance is the difference between sales revenue on the static budget and sales revenue on the flexible budget.

3. A static budget is one that shows estimated revenues and costs at multiple activity levels.

4. If the master budget prepared at a volume level of 10,000 units includes direct materials of $40,000, a flexible budget based on a volume of 12,000 units would include direct materials of $48,000.