Answer the Following Questions Using the Information Below

Multiple Choice

Answer the following questions using the information below:
Bowden Corporation used the following data to evaluate their current operating system. The company sells items for $20 each and used a budgeted selling price of $20 per unit.

-What is the static-budget variance of operating income?

A) $10,600 favorable
B) $10,600 unfavorable
C) $13,100 favorable
D) $13,100 unfavorable