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Rodon Company has the following information available: Budgeted cost of direct materials at 900,000 units$900,000 Budgeted cost of direct materials at 820,000 units$820,000 Actual cost
Rodon Company has the following information available: Budgeted cost of direct materials at 900,000 units$900,000 Budgeted cost of direct materials at 820,000 units$820,000 Actual cost of direct materials at 820,000 units$840,000 Actual level of output(units)820,000 Planned level of output(units)900,000 The cost driver of product costs is units of output. What is the static budget variance for direct material costs?
A) $20,000 Unfavorable B) $20,000 Favorable C) $60,000 Favorable D) $60,000 Unfavorable
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