If the volume of output of a factory for the month of June is 50,000 units, while the budgeted output was 40,000 units:

Actual fixed costs per unit may be expected to exceed budgeted levels.

Actual cost per unit will be higher than standard cost per unit.

Comparison of budgeted results and actual results will be misleading unless the company uses a flexible budget.

Both total production costs and unit production costs should be approximately 25% above budgeted levels.