Purple Company Planned to Produce 12,000 Units

Multiple Choice

Purple Company planned to produce 12,000 units.Processing required 16,000 machine hours at a cost of $15,000 + $10.50 per machine hour.Actual sales were 14,000 units requiring 20,000 machine hours.Actual processing cost was $222,000._____ is the flexible-budget variance for processing.

A) $3,000 favorable
B) $39,000 unfavorable
C) $3,000 unfavorable
D) None of these answers is correct