1. Schooner Corporation used the following data to evaluate its current operating system. The company sells items for $25 each and used a budgeted selling price of $25 per unit.

Actual Budgeted

Units sold 173,000 units 181,000 units

Variable costs $1,211,000 $1,485,000

Fixed costs $806,000 $770,000

What is the static-budget variance of variable costs?

A) $204,000 favorable

B) $36,000 favorable

C) $36,000 unfavorable

D) $204,000 unfavorable