A manufacturing company has the following budgeted and actual figures for a particular month:

• Budgeted production: 5,000 units
• Actual production: 4,800 units
• Budgeted cost per unit: $10
• Actual cost per unit: $11

Requirements:

1. Calculate the total budgeted cost.
2. Calculate the total actual cost.
3. Compute the cost variance.
4. Identify if the variance is favorable or unfavorable.
5. Provide two possible reasons for the variance.