Answer:
The question isn't quite complete. However this could be inferred from it:
Normal loss= 700 Units
Original Budgeted Unit Cost= $15.75
Actual Unit Cost= $16.29
Step-by-step explanation:
Normal losses are treated as product costs; that is, the cost of the lost units is included as a part of the cost of all units finished or still in process because the good units could not have been produced without this normal spoilage.
The effect is that the unit cost of the remaining units is greater than if no losses had occurred, because the production costs for the period are spread over a smaller number of good units. (Expected Production 14,000 Units- 13,300 Actual units= 700)
Due to the normal loss there occurred deviations from the original budget.