Abrasive Brothers, Inc

Multiple Choice

Abrasive Brothers, Inc., manufactures brake pads for automobiles. For April 2017, the company's static budget projected 5,000 units would be produced and sold at a variable cost of $6 per unit and total fixed costs of $12,000. The budgeted selling price was $18 per unit. Actual results for April were somewhat disappointing in that the company produced and sold only 4,200 units at an actual price of $17.50 per unit.
-The actual cost of goods sold for April amounted to $39,800. What would be the most meaningful variance to report for cost of goods sold for April?

A) $2,000 Favorable.
B) $2,600 Unfavorable.
C) $2,700 Favorable.
D) $2,100 Unfavorable.