The static budget is used to compute flexible budget variances as well as cost and efficiency variances for direct materials and direct labor.

Name: The static budget is used to compute flexible budget variances as well as cost and efficiency variances for direct materials and direct labor.
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Quizplus · Accepted Answer

The static budget is not used to compute flexible budget variances; instead, the flexible budget is used to compare actual performance to budgeted performance, adjusting for actual activity levels.

The Static Budget Is Used to Compute Flexible Budget Variances