Barrington Industries anticipated selling 30,000 units of a major product and paying sales commissions of $6 per unit. Actual sales and sales commissions totaled 33,000 units and $190,500, respectively. If the company used a static budget for performance evaluations, Barrington would report a cost variance of:

Multiple Choice

• $7,500U.

• $7,500F.

• $10,500U.

• $10,500F.

• None of the answers is correct.