Johansson Company developed the following static budget at the beginning of the company's accounting period:

Revenue (8,300 units)	$16,600
Variable costs	4,150
Contribution margin	$12,450
Fixed costs	4,150
Net income	$ 8,300

1a. If actual production totals 8,700 units, the flexible budget would show total costs of (Do not round your intermediate calculations.):

$4,350.

$8,500.

$4,250.

None of these is correct.

1b.

The following static budget is provided:

	Per unit	Total
Sales	$50	$700,000
Less variable costs:
Manufacturing costs	20	280,000
Selling and administrative costs	10	140,000
Contribution margin	$20	$ 280,000
Less fixed costs:
Manufacturing costs		80,000
Selling and administrative costs		129,000
Total fixed costs		209,000
Net income		$ 71,000

What will be the overall volume variance if 15,000 units are produced and sold?

$0 F

$91,000 F

$20,000 F

$300,000 U