When they made their master budget, vann enterprises had direct material per unit costs of $12.43, direct labor per unit costs of $8.46, and manufacturing overhead per unit costs of $14.29. they planned to sell 16,000 units in the first quarter. however, in the first week of the first quarter, the direct material per unit costs rose to $16.12, which increased the selling price of the finished product. therefore, vann enterprises only sold 15,500 units. what would the difference in cost of goods sold be between the budgeted income statement and the actual income statement?

Difference: 20,170

The actual total Cost of good sold is 20,170 dollars higher than budgeted COGS

At unit level, is 3.69 higher.

Explanation:

Budget COGS

12.43 + 8.46 + 14.29 = 35.18

Budgeted sales units x COGS

16,000 x 35.18 = 562,880

Actual COGS

16.12 + 8.46 + 14.29 = 38.87

Actual sales x COGS per unit

15,000 x 38.87 = 583,050

Units difference: 38.87 - 35.18 = 3.69

Total Difference: 583,050 - 562,880 = 20,170

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