Answer:
correct option is D : $1,200, favorable
Explanation:
given data
direct materials = $40,500
direct labor = $54,000
overhead = $13,500
actual direct materials = $42,000
actual direct labor = $51,000
actual overhead = $13,800
to find out
total difference between the static budget and actual and difference favorable or unfavorable
solution
we know that If the actual is less than budget that is favorable condition
and If the actual are more than the budgets, it is called as unfavorable condition
so here
Budgets Actual Condition
Direct Materials 40500 42000 1500 unfavorable
Direct Labors 54000 51000 3000 favorable
Overheads 13500 13800 300 unfavorable
so that Total Difference and Condition = 1200 favorable
so correct option is D : $1,200, favorable
