Using the budget data in the plant accountants report, compute the expected cost per unit based on the budgeted volume of 18,000 units.

a. Using this information, create an alternative budget based on the actual volume of 14,000.

b. Compute variances between this alternative budget and the actual figures given by the plant accountant.

Budget Actual Variance Units Sales 18,00014,000 $864,000 $686,000 $178,000U 4,000 Variable manufacturing costs: $108,000 $85,400 $22,600 F Direct material Direct labor Indirect labor Idle time Cleanup time Miscellaneous supplies Total variable manufacturing cost 288,000246,00042,000 57,60044,40013,200 200 800 1,200 $484,000 $404,000$80,000 14,400 14,200 10,80010,000 4,000 5,200 $800 $512,800 $432,000 $80,800 $28,800$28,000 Variable shipping costs otal variable costs Contribution margin $351,200 $254,000 $97,200