Onyx Company Prepared a Static Budget at the Beginning of the Month

Multiple Choice

Onyx Company prepared a static budget at the beginning of the month. At the end of the month, the company is analyzing actual results versus budget using flexible budget methodology. Data are as follows:
Static budget: Sales volume: 1,000 units Price: $70 per unit
Variable expense: $32 per unit Fixed expenses: $37,500 per month
Operating income: $500
Actual results: Sales volume: 990 units Price: $74 per unit
Variable expense: $35 per unit Fixed expenses: $33,000 per month
Operating income: $5,610
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Based on the above data, how much was the flexible budget variance for variable expenses?

A) $5,490 U
B) $2,970 U
C) $2,970 F
D) $3,960 F