Progress, Not Perfection (PNP) has determined that their costs are driven by the number of machine hours. The budgeted and actual amounts are provided below:
- Budgeted machine hours: 1,200 machine hours
- Budgeted unit variable cost: $1.20
- Budgeted total fixed costs: $14,000
- Actual machine hours: 1,800 machine hours
- Actual unit variable cost: $1.60
- Actual total fixed costs: $15,200
What are the total costs under a static budget?
A) $16,160
B) $15,440
C) $18,080
D) $16,640