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    Flexible Budgeting and Analysis of Overhead Costs Chapter 11 McGraw-Hill/Irwin Copyright © 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.  Learning Objective 1 11-2  Flexible Budgets Static budgets are prepared for a single, planned level of activity. Performance evaluation for overhead is difficult when actual activity differs from the planned level of activity. Hmm! Comparing static budgets with actual costs is like comparing apples and oranges. 11-3  Flexible Budgets Consider the following example from the Cheese Company . . . Hmm! Comparing static budgets with actual costs is like comparing apples and oranges. 11-4
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