The following budgeted and actual volume and cost data are for Marchof this year:

	Budget	Actual
Volume	40,000	36,000
Budgeted manufacturing costs:
Variable costs per unit:
Direct materials	$30.00
Direct labor	15.00
Overhead	5.00
Total fixed overhead costs	$400,000
Actual manufacturing costs:
Direct materials		$1,160,000
Direct labor		580,000
Variable overhead		180,000
Fixed overhead		396,000

• Prepare a static (40,000) budget analysis of production costs for March of this year.
• Prepare a flexible (36,000) budget analysis of production costs for March of this year