44. Garcia Company planned to produce 12,000 units. This level of activity required 40 setups at a cost of $18,000 plus $500 per setup. Actual production was 10,000 units, requiring 15 setups. Actual setup cost was $26,000. What is the static budget amount for total setup costs? A) $21,000 B) $25,500 C) $26,000 D) $38,000

45. Holy Smokes Company has the following information available:

Budgeted cost of direct materials at 1,000,000 units $1,000,000 Budgeted cost of direct materials at 950,000 units $950,000 Actual cost of direct materials at 950,000 units $975,000 Actual level of output(units) 950,000 Planned level of output(units) 1,000,000

The cost driver of product costs is units of output. What is the flexible budget variance for direct material costs? A) $25,000 Unfavorable B) $25,000 Favorable C) $50,000 Favorable D) $50,000 Unfavorable