ABC Inc. Has the flexible budgeted income statement for the period ended in December 31, 2019 at 600 units sold as follows:

Sales (100 price per unit *600 units) 600,000

• Cost of gold sold (600*50) 300,0000
• Gross profit 300,000
• Operating expenses:
• Wages and salaries (10,000+ 10*600) 16,000
• Supplies (5000+2*600) 6,200
• Insurance 3,000
• Total expenses 25,200
• Net operating income 274,800

Whereas the actual income statement for the period ended in December 31, 2019 at 600 units sold as follows:

Sales 650,000

• Cost of gold sold 300,000
• Gross profit 350,000
• Operating expenses:
• Wages and salaries 20,000
• Supplies) 7,000
• Insurance 3,000
• Total expenses 30,000
• Net operating income 320,000

Required: compute the variance and specify whichever favorable and unfavorable variance is.