Lock Clothing Company's static budget at 2,000 units of production includes $8,000 for direct labor, $2,000 for utilities (variable), and total fixed costs of $16,000. Actual production and sales for the year was 6,000 units, with an actual cost of $47,200.
Instructions
Determine if Lock Clothing is over or under budget.

Question

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The Answer of Lock Clothing Company's static budget at 2,000 units of production includes $8,000 for direct labor, $2,000 for utilities (variable), and total fixed costs of $16,000. Actual production and sales for the year was 6,000 units, with an actual cost of $47,200.
Instructions
Determine if Lock Clothing is over or under budget.

Lock Clothing Company's Static Budget at 2,000 Units of Production