Which one of the following would be the same total amount on a flexible budget and a static budget if the activity level is different for the two types of budgets?

Question

Quizplus · Accepted Answer

Fixed manufacturing overhead costs remain the same regardless of the level of activity, so the total amount would be the same on both a flexible and static budget. The other options - direct labor cost, indirect labor cost, and variable manufacturing overhead - would all change depending on the level of activity, and therefore would not be the same on both types of budgets.

Which One of the Following Would Be the Same Total