The Static Budget,at the Beginning of the Month,for Redwyne Company $\$ 50.00$

Multiple Choice

The static budget,at the beginning of the month,for Redwyne Company follows: Static budget:
Sales volume: 2,000 units; Sales price: $\$ 50.00$ per unit
Variable costs: $\$ 14.00$ per unit; Fixed costs: $\$ 25,000$ per month
Operating income: $\$ 47,000$


Actual results, at the end of the month, follows:
Actual results:
Sales volume: 1,900 units; Sales price: $\$ 58.50$ per unit
Variable costs: $\$ 16.00$ per unit; Fixed costs: $\$ 33,000$ per month
Operating income: $\$ 47,750$
Calculate the flexible budget variance for variable costs.

A) $30,400 U
B) $4,350 U
C) $3,800 U
D) $26,600 F