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Tomorrow Company has the following information available: Budgeted cost of direct materials at 900,000 untes $900,000 Budgeted cost of direct materials at 820,000 units $820,000

Tomorrow Company has the following information available:

Budgeted cost of direct materials at 900,000 untes $900,000

Budgeted cost of direct materials at 820,000 units $820,000

Actual cost of direct materials at 820,000 unites $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 ouput. What is the static budget variance for direct material costs?

A) $60,000 Favorable B) $60,000 Unfavorable C) $20,000 Unfavorable D) $20,000 Favorable

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