The real number of units produced was 8,000; performance evaluation report that uses a flexible and a static budget. The budgeted costs for Connor Company for direct materials, direct production labor and direct distribution labor are $40, $8 and $12, respectively.

Real Costs Master Static Budget Variation

Direct Materials $364,000 $400,000 $36,000 F

DL Production 78,000 80,000 2,000 F

DL Distribution 110,000 120,000 10,000 F