Answer the Following Questions Using the Information Below:
Contrafic Corporation

Multiple Choice

Answer the following questions using the information below:
Contrafic Corporation used the following data to evaluate its current operating system. The company sells items for $21 each and used a budgeted selling price of $21 per unit.
$$\begin{array} { l r r } & \underline { \text { Actual } } & \text { Budgeted } \\\text { Units sold }& 180,000 \text { units } & 185,000 \text { units } \\\text { Variable costs } & \$ 1,080,000 & \$ 1,295,000 \\\text { Fixed costs }&\$ 800,000 & \$ 775,000\end{array}$$
-What is the static-budget variance of variable costs?

A) $25,000 favorable
B) $25,000 unfavorable
C) $215,000 favorable
D) $215,000 unfavorable