Apply Flexible And Rolling Budgets Practice Test

Harwood Industries budgets variable manufacturing costs at $14 per unit and fixed manufacturing costs at $120,000 per month. The static budget assumed 8,000 units. Actual production was 9,500 units. What are the total costs in the flexible budget prepared at the actual production level?

Harwood Industries has a static budget cost of $232,000 (at 8,000 units) and actual costs of $262,500 (at 9,500 units). What is the static budget variance for total manufacturing costs?