Mycoskie Craft Beer sells craft beers by the keg. Revenues and variable costs vary linearly with the number of kegs sold. Budgeted and actual revenues and costs are shown below.

Original budget Actual

Kegs sold $3,2003,600$

Revenues $$1,600,000$ $$1,780,000$

Variable costs $(1,200,000)(1,350,000)$

Fixed costs $(100,000)(110,000)$

Net income $$300,000$ $$320,000$

You can reconcile the difference between income under the revised budget $($not shown$)$ and actual income of $$320,000$ using variance analysis.

$($PLEASE SHOW STEPS AND EXPLANATION$)$

QUESTION $1.$

Mycoskie's price variance was $...$

A$.$ Favorable

B$.$ Unfavorable

C$.$ Zero

QUESTION $2.$

Mycoskie's fixed cost variance was...

A$.$ Favorable

B$.$ Unfavorable

C$.$ Zero

QUESTION $3.$

Mycoskie's variable cost variance was...

A$.$ Favorable

B$.$ Unfavorable

C$.$ Zero