Select all that applyWhich statements regarding flexible budgeting are true?Multiple select question.The budget allowance for variable costs should be flexed to show the costs that should have been incurred for the actual level of activity.It involves variable cost items such as direct materials, direct labor, and variable manufacturing overhead.It is done by multiplying the variable cost per unit of each variable cost item by the actual activity level.Flexible budgeting should include an adjustment to the fixed overhead budget.

The budget allowance for variable costs should be flexed to show the costs that should have been incurred for the actual level of activity. - True. In flexible budgeting, the budget allowance for variable costs is adjusted based on the actual level of activity.

It involves variable cost items such as direct materials, direct labor, and variable manufacturing overhead. - True. Flexible budgeting involves all variable costs, which include direct materials, direct labor, and variable manufacturing overhead.

It is done by multiplying the variable cost per unit of each variable cost item by the actual activity level. - True. The calculation for a flexible budget involves multiplying the variable cost per unit by the actual level of activity.

Flexible budgeting should include an adjustment to the fixed overhead budget. - False. Fixed costs do not change with the level of output or activity, so they are not adjusted in a flexible budget.

The budget allowance for variable costs should be flexed to show the costs that should have been incurred for the actual level of activity. - True. In flexible budgeting, the budget allowance for variable costs is adjusted based on the actual level of activity. This allows for a more accurate comparison of budgeted costs to actual costs.

It involves variable cost items such as direct materials, direct labor, and variable manufacturing overhead. - True. Flexible budgeting involves all variable costs, which include direct materials, direct labor, and variable manufacturing overhead. These costs change in direct proportion to changes in production volume or activity.

It is done by multiplying the variable cost per unit of each variable cost item by the actual activity level. - True. This is the basic calculation used in flexible budgeting. The variable cost per unit is multiplied by the actual level of activity to determine the total variable cost for that level of activity.

Flexible budgeting should include an adjustment to the fixed overhead budget. - False. Fixed overhead costs do not change with the level of production or activity, so they are not adjusted in a flexible budget. They remain constant regardless of the actual level of activity.