Smith's Actual Manufacturing Costs for May Totaled $72,000, Whereas Budgeted

Smith's actual manufacturing costs for May totaled $72,000, whereas budgeted manufacturing costs (at standard) were $80,000. A comparison of the budgeted costs and actual amounts:

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