Reference no: EM131811456

Question - The following budgeted and actual volume and cost data are for January of this year:

Budget Actual

Volume 20,000 18,000

Budgeted manufacturing costs:

Variable costs per unit:

Direct materials $40.00

Direct labor 12.00

Overhead 2.25

Total fixed overhead costs $150,000

Actual manufacturing costs:

Direct materials $1,320,000

Direct labor 396,000

Variable overhead 82,000

Fixed overhead 175,000

Required -

a. Prepare a static budget analysis of production costs for January of this year.

b. Prepare a flexible budget analysis of production costs for January of this year.