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Production costs (including $30,000 of fixed costs) are budgeted at $150,000 for an expected output of 100,000 units. Actual output was 90,000 units, while actual

Production costs (including $30,000 of fixed costs) are budgeted at $150,000 for an expected output of 100,000 units. Actual output was 90,000 units, while actual costs were $142,500. What is the budget variance and is it favorable or unfavorable?

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