A company budgeted for 10,000 units at a variable cost of $20 per unit and fixed costs of $150,000. Actual production was 9,000 units with a variable cost of $18 per unit and fixed costs of $160,000.

Requirements:

(a) Calculate the total cost variance. (b) Determine the variable cost variance. (c) Compute the fixed cost variance. (d) Analyze the reasons for the variances.