A company sells a line of women's dresses. Their performance report for November is shown below. The company use a flexible budget to analyze its performance and to measure the effect on operating income of the various factors affecting the difference between budgeted and actual operating income.

	Actual	Budget
Dresses Sold	5,000	6,000
Sales	$235,000	$300,000
Variable Costs	(145,000)	(180,000)
Contribution Margin	90,000	120,000
Fixed Costs	(84,000)	(80,000)
Operating Income	$6,000	$40,000

1. What is the sales price variance for this period?

a. $30,000 U

b. $18,000 U

c. $20,000 U

d. $15,000 U

2. What is the variable cost flexible budget for November?

a. $5,000 F

b. $5,000 U

c. $4,000 F

d. $4,000 U