Potter Company Has the Following Information Assume the Cost Driver of Product Costs Is Units of loss

Multiple Choice

Potter Company has the following information:
$\begin{array}{ll}\text { Actual operating loss at 5,000 units } & \$(11,000) \\\text { Budgeted operating income at 5,000 units } & \$ 5,000 \\\text { Budgeted operating income at 10,000 units } & \$ 12,000 \\\text { Planned level of operations } & 10,000 \text { units } \\\text { Actual level of operations } & 5,000 \text { units }\end{array}$
Assume the cost driver of product costs is units of production.What is the flexible budget variance for operating income?

A) $5,000 Unfavorable
B) $11,000 Unfavorable
C) $16,000 Unfavorable
D) $16,000 Favorable