Hoppy Corporation Compares Monthly Operating Results to a Static Budget

Multiple Choice

Hoppy Corporation compares monthly operating results to a static budget prepared at the beginning of the month. When the actual level of activity is less than budgeted, which of the following would be true?

A) Variable costs would show favorable variances.
B) Variable costs would show unfavorable variances.
C) Fixed costs would show favorable variances.
D) Fixed costs would show unfavorable variances.