Dallas Company management currently uses a historical cost system to prepare internal performance reports. There were 200,000 units at the beginning of May. Normal volume is 200,000 units and budgeted fixed costs are $300,000.

Variable manufacturing cost per unit in April was $1.10 and in May was $1.00.

Production in April was 300,000 units and in May it was 100,000 units.

Actual and budgeted fixed overhead costs were the same in both months. Management uses a standard cost system. No variable cost variances existed in either April or May. There were no non-manufacturing costs for April and May.

The company sold 100,000 units at a price of $5.00 per unit in both April and in May.