The Static Budget,at the Beginning of the Month,for Vintage Wine

Multiple Choice

The static budget,at the beginning of the month,for Vintage Wine Company follows: Static budget:
Sales volume: 2000 units; Sales price: $50.00 per unit
Variable costs: $13.00 per unit; Fixed costs: $25,500 per month
Operating income: $48,500
Actual results,at the end of the month,follows:
Actual results:
Sales volume: 1900 units; Sales price: $58.50 per unit
Variable costs: $16.00 per unit; Fixed costs: $34,300 per month
Operating income: $46,450
Calculate the flexible budget variance for variable costs.

A) $30,400 U
B) $1650 U
C) $5700 U
D) $24,700 F