Question: Laramie, Inc., has an operating environment with considerable uncertainty. The company prepares the budget for several different volume levels. Laramie had the following budgeted data:

Laramie, Inc., has an operating environment with considerable uncertainty. The company prepares the budget for several different volume levels. Laramie had the following budgeted data:

Budgeted variable costs per unit:
Direct materials $ 7.00
Direct labor 10.00
Supplies 1.00
Indirect labor 0.50
Power 0.05
Budgeted fixed overhead for 2018:
Supervision $4,000
Depreciation 3,000
Rent 2,000

What is the difference in total budgeted costs between the volume range of 4,000 and 5,000 units?

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