At the end of 2017, Cyril Fedako, CFO for Central Products, received a report comparing budgeted and actual production costs for the company's plant in Forest Lake, Minnesota:
Manufacturing Costs
Forest Lake Plant
Budget versus Actual 2017

His first thought was that costs must be out of control since actual costs exceed the budget by $585,000. However, he quickly recalled that the budget was set assuming a production level of 60,000 units. The Forest Lake plant actually produced 65,000 units in 2017.
Required
Given that production was greater than planned, should Cyril expect that all actual costs will be greater than budgeted? Which costs would you expect to increase, and which costs would you expect to remain relatively constant?

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Difference (Actual Minus Budget) Actual Budget $3,200,000 2,300,000 475,000 125,000 350,000 Materials Direct labor Supervisory salaries Utilities $300,000 $3,500,000 500,000 135,000 380,000 90,000 255,000 235,000 25,000 10,000 30,000 -0- 5,000 Machine maintenance Depreciation of building Depreciation of equipment Janitorial 250,000 220,000 $7,010,000 15,000 Total $7,595,000 $585,000