Rollo Company Has Developed Cost Formulas for the Drivers of the Following

Multiple Choice

Rollo Company has developed cost formulas for the drivers of the following production activities:
- If the actual activity was 20 setups and the actual fixed cost for inspections was $28,000 and the variable cost for inspections was $5,000, the total variance for inspections is

A) $2,000 favorable.
B) $2,000 unfavorable.
C) $1,000 favorable.
D) $1,000 unfavorable.