Based on a predicted level of production and sales of 30,000 units, a company anticipates total variable costs of $120,000, fixed costs of $42,000, and operating income of $36,000. Based on this information, the budgeted amount of variable costs for 27,000 units would be:

• A) $120,000.

• B) $108,000.

• C) $78,000.

• D) $42,000.

• E) $129,000.

A job was budgeted to require 5 hours of labor per unit at $11.00 per hour. The job consisted of 8,500 units and was completed in 40,500 hours at a total labor cost of $469,800. What is the total labor cost variance?

• A) $460 unfavorable.

• B) $8,500 unfavorable.

• C) $2,300 unfavorable.

• D) $3,724 unfavorable.

• $E) 6,024 unfavorable.