Starlight company\'s static budget is based on a planned activity level of 58,00

Question

Starlight company's static budget is based on a planned activity level of 58,000 units. At the same time the static budget was prepared, the management accountant prepared two additional budgets, one based on 53,000 units and one based on 63,000. The company actually produced and sold 62,000 units. In evaluating its performance, management should compare the company's actual revenues and costs to which of the following budgets?

A budget based on 63,000 units

A budget based on 58,000 units

A budget based on 53,000 units

A budget based on 62,000 units

Explanation / Answer

Management should compare the company's actual revenues and costs for A budget based on 62,000 units

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