A Company's Master Budget for October Is to Manufacture and Sell

Multiple Choice

A company's master budget for October is to manufacture and sell 30,000 units for a total of $270,000 with total variable costs of $180,000 and total fixed costs of $24,000.The company actually manufactured and sold 32,000 units and generated $45,000 of operating income in October.The operating income flexible-budget (FB) variance is:

A) $3,600 unfavorable.
B) $6,000 unfavorable.
C) $15,400 unfavorable.
D) $21,000 unfavorable.
E) $27,000 unfavorable.