Alaska Company expressed the total expenses (Y) component of its master budget for February with the cost formula Y = $100,000 + $40 * X, where X represents the expected number of units of its only product to be manufactured and sold. The budgeted average selling price per unit was $65 for budgeted sales volume 5,000 units. Reported actual results for February were as follows:

Sales	5,400 units
Sales revenue	$324,000
Less variable costs	$194,400
Contribution margin	$129,600
Less fixed expenses	$102,000
Operating income	$27,600

What was the total static budget variance for February?

Multiple Choice

• $7,400 U

• $2,600 F

• $10,000 F

• $1,000 U