s. A variance is considered to a. explain why budget targets are not met. b. be the required number of inputs for one standard output. c. be the difference between an actual result and a budgeted amount d. be the difference between a budgeted amount and a standard amount. 6. Prestwich Company has budgeted production for next year as follows: Quarter First Second Third Fourth Production in units 60,000 80.000 96,000 70.000 Two pounds of material A are required for each unit produced. The company has a policy of maintaining a stock of material A on hand at the end of each quarter equal to 25% of the next quarter's production needs for material A. A total of 30,000 pounds of material A are on hand to start the year. Budgeted purchases of material A for the second quarter would be: A. 82,500 pounds B. 165,000 pounds C. 200,000 pounds D. 205,000 pounds