Flexible vs. Static Budget: Impact on Expenses and Volume Variance

A hospital outpatient department budgets for 1,500 visits per year. At the end of the year, the hospital has 1,200 patient visits. When comparing the flexible budget to the static budget, which of the following will be true?

Group of answer choices

'Total expenses in the flexible budget will be lower than in the static budget; volume variance for total expenses will be favorable.'

'Total expenses in the flexible budget will be lower than in the static budget; volume variance for total expenses will be unfavorable.'

'Total expenses in the flexible budget will be higher than in the static budget; volume variance for total expenses will be favorable.'

'Total revenue in the flexible budget will be higher than in the static budget; volume variance for total revenue will be favorable.'

'Total revenue in the flexible budget will be lower than in the static budget; volume variance for total revenue will be favorable.'

'Total expenses in the flexible budget will be lower than in the static budget; volume variance for total expenses will be favorable.'