$8-28$ Activity$-$Level Variances

Materials$-$support costs for the Pittsburgh Steel Company $($PSC$)$ are variable costs that depend on the weight of material $($plate steel, castings, etc.$)$ moved. For the current budget period and based on scheduled production, PSC expected to move $750,000$ pounds of material at a cost of $$\mathrm{.}25$ per pound. Several orders were canceled by customers, and PSC moved only $650,000$ pounds of material. Total materials support costs for the period were $$177,000.$

Compare actual support costs to the static$-$budget support costs by computing static budget, activity$-$level, and flexible$-$budget variances for materials$-$support costs.