The Company's Actual Manufacturing Costs for the Month of May

The Company's actual manufacturing costs for the month of May totaled $144,000, while the budgeted manufacturing costs were $162,000. Comparison of the budgeted costs with actual amounts:

A) Is not significant unless the budgeted and actual figures are based upon the same level of production.
B) Demonstrates that the Manufacturing Department operated very efficiently during May.
C) Indicates that production cost per unit was 10% below budgeted cost per unit.
D) Indicates that the Company produced only 90% of the number of units budgeted for production in May.