Answer the Following Questions Using the Information Below:
the Actual

Multiple Choice

Answer the following questions using the information below:
The actual information pertains to the month of September. As a part of the budgeting process, Twilith Fencing Company developed the following static budget for September. Twilith is in the process of preparing the flexible budget and understanding the results.
$\begin{array}{lrrr}&\begin{array}{r}\text { Actual } \\\text { Results }\end{array} & \begin{array}{r}\text { Flexible } \\\text { Budget }\end{array} & \begin{array}{r}\text { static } \\\text { Budget }\end{array}\\\text { Sales volume (in units) } & 12,000 & & 15,000 \\\text { Sales revenues } & \$ 600,000 & \$ & \$ 750,000 \\\text { Variable costs } & 307,200 & \$ & 360,000\\\text { Contribution margin }&292,800&\$&7390,000\\\text { Fixed costs } & 274,800& \$ & 270,000 \\\text { Operating profit } & \$ 18,000 & \$ & \$ 120,000\end{array}$
-The flexible-budget variance for variable costs is ________.

A) $19,200 unfavorable
B) $61,440 unfavorable
C) $52,800 favorable
D) $76,800 favorable