Leshan Company planned to produce 12,000 units. This level of production required 20 setups at a cost of $18,000 plus $500 per setup. Actual production was 10,000 units, requiring 15 setups. Actual setup cost was $26,000. What is the flexible budget variance for setup costs?

A.

$500 Unfavorable

B.

$2,000 Favorable

C.

$2,000 Unfavorable

D.

$500 Favorable