Avalon, Inc.’s static budget shows $40,500 budgeted for direct materials, $54,000 budgeted for direct labor, and $13,500 budgeted for overhead. Avalon’s actual direct materials were $42,000, actual direct labor was $51,000, and actual overhead was $13,800. What is the total difference between the static budget and actual, and is the difference favorable or unfavorable?

A : $4,800, unfavorable

B : $1,200, unfavorable

C : $4,800, favorable

D : $1,200, favorable

Answer rating: 100% (QA)

Provision Favourable Condition If the actuals are less than the budgets it is called as favou... View the full answer