When computing a price variance, the price is held constant.

Group startsTrue or False

True, unselectedFalse

Fixed BudgetSales $(16,000$ units $$ $$204$ per unit$)3,264,000$Costs$$Direct materials$384,000$Direct labor$688,000$Indirect materials$416,000$Supervisor salary$184,000$Sales commissions$144,000$Shipping$240,000$Administrative salaries$234,000$Depreciation$$Office equipment$204,000$Insurance$174,000$Office rent$184,000$Income$412,000$

Compute total variable cost per unit.

Compute total fixed costs.

Prepare a flexible budget at activity levels of $14,000$ units and $18,000$ units.