MetaProMetaPro Systems is a start-up company that makes connectors for high-speed Internet connections. The company has budgeted variable costs of $ 140$140 for each connector and fixed costs of $ 5 comma 500$5,500 per month. MetaProMetaPro 's static budget predicted production and sales of 100100 connectors in August, but the company actually produced and sold only 7878 connectors at a total cost of $ 18 comma 000$18,000. MetaProMetaPro 's flexible budget variance for total costs is

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Ortiz

Business

7 July, 14:00

MetaProMetaPro Systems is a start-up company that makes connectors for high-speed Internet connections. The company has budgeted variable costs of $ 140$140 for each connector and fixed costs of $ 5 comma 500$5,500 per month. MetaProMetaPro 's static budget predicted production and sales of 100100 connectors in August, but the company actually produced and sold only 7878 connectors at a total cost of $ 18 comma 000$18,000. MetaProMetaPro 's flexible budget variance for total costs is

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Mason Kemp · Answer 1

Total variation = $1,580 unfavorable

Explanation:

Giving the following information:

The company has budgeted variable costs of $140 for each connector and fixed costs of $5,500 per month.

MetaPro 's static budget predicted production and sales of 100 connectors in August, but the company produced and sold only 78 connectors at a total cost of $18,000.

Standard total cost = 140*78 + 5,500 = $16,420

Actual cost = 18,000

Total variation = 18,000 - 16,420 = 1,580 unfavorable