Units of Production 25000 27000 29000 Production Costs Variable Costs Direct Materials 3 75000 81000 87000 Direct Labor 5 125000 135000 145000 Variable Overhead 10 250000 270000 290000 Total Variable Costs 18 450000 486000 522000 Fixed Costs Rent 20000 20000 20000 Utilities 10000 10000 10000 Supervisor Salary 100000 100000 100000 Total Fixed Costs 130000 130000 130000 Total Costs 580000 616000 652000 Using the above Flexible Budget Prepare the Variance analysis and Comment on the material variances BUDGET ACTUAL Variance U/F Units of Production 27000 27000 Production Costs Variable Costs Direct Materials 95000 Direct Labor 160000 Variable Overhead 250000 Total Variable Costs 505000 Fixed Costs Rent 20000 Utilities 10000 Supervisor Salary 110000 Total Fixed Costs 140000 Total Costs 645000