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If production was budgeted at 400 units and the actual production was 420 units, what would...

If production was budgeted at 400 units and the actual production was 420 units, what would be the static budget variance for materials if the actual cost of materials was $4,150 and the budgeted cost per unit is $10?

a.$150 U

b.$100 F

c.$200 U

d.$50 F

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Answer #1

Static budget variance = static budget cost-flexible budget cost

= 4000-4200

Static budget variance = 200 U

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