Chong Corporation Recently Prepared a flExible Budget for Water Usage

Multiple Choice

Chong Corporation recently prepared a flexible budget for water usage at its manufacturing plant.Budgeted water cost at various projected production levels is as follows: Actual units produced amounted to 60,000.Actual cost incurred for water usage was $4,500.What was Chong's cost variance for water?

A) $300 favorable.
B) $500 unfavorable.
C) $1,500 favorable.
D) $2,700 favorable.
E) None of the answers is correct.