Previous Page Next Page Page 3 of 15 Question 3 (5 points) VAT Corporation's budgeted product costs for the first quarter of 2008 were based on an expected volume of 1,500 units. The budgeted unit costs appear below: Direct material $ 1.50 Direct labor 2.25 Variable overhead 4.25 Fixed overhead 3.00 Total $11.00 If VAT's actual volume was 15% below its expected volume, we would expect: Both actual total costs and actual cost per unit to be less than the original budgeted amounts Actual total CM to be greater than and actual CM per unit to be the same as the original budgeted amounts. Actual total costs to be greater than, and actual cost per unit to be less than the original budgeted amounts Actual total costs to be less than, and actual cost per unit to be greater than the original budgeted amounts Previous Page Next Page Page 3 of 15