The difference between the planning budget and the flexible budget is known as activity variance. It arises due to the difference between the planned activity level and the actual activity level. To prepare: The flexible budget performance report.

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Chapter 9, Problem 6E

To determine

Introduction: The difference between the planning budget and the flexible budget is known as activity variance. It arises due to the difference between the planned activity level and the actual activity level.

To prepare: The flexible budget performance report.

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