Tomorrow Company has the following information available:

Budgeted cost of direct materials at 900,000 units $900,000

Budgeted cost of direct materials at 820,000 units $820,000

Actual cost of direct materials at 820,000 units $840,000

Actual level of production (units) 820,000

Expected level of production (units) 900,000

The cost driver of product costs is production units. What is the static budget variance for direct material costs?

Answer rating: 100% (QA)

The static budget variance for direct material costs can be calculated as the difference be... View the full answer