Question

MetaProMetaPro Systems is a​ start-up company that makes connectors for​ high-speed Internet connections. The company has budgeted variable costs of $ 140$140 for each connector and fixed costs of $ 5 comma 500$5,500 per month. MetaProMetaPro​'s static budget predicted production and sales of 100100 connectors in​ August, but the company actually produced and sold only 7878 connectors at a total cost of $ 18 comma 000$18,000. MetaProMetaPro​'s flexible budget variance for total costs is

Answer 1

Answer:

Total variation= $1,580 unfavorable

Explanation:

Giving the following information:

The company has budgeted variable costs of $140 for each connector and fixed costs of $5,500 per month.

MetaPro​'s static budget predicted production and sales of 100 connectors in​ August, but the company produced and sold only 78 connectors at a total cost of $18,000.

Standard total cost= 140*78 + 5,500= $16,420

Actual cost= 18,000

Total variation= 18,000 - 16,420= 1,580 unfavorable