1. Why is a flexible budget much more informative for comparison than a static budget?
2. At the beginning of the year, Long, Inc. estimates factory overhead to be $50,000 based on 40,000 units. Long believes there is $1 variable overhead per unit produced and $10,000 fixed costs. At the end of the year, 62,000 units were produced at a cost of $80,000.
   • What amount would a flexible budget estimate for total factory overhead at a production level of 62,000 units?
   • What portion of the $30,000 variance is due to activity?
   • What portion of the $30,000 variance is due to spending?