The actual information pertains to the month of June. As a part of the budgeting process, Great Cabinets Company developed the following static budget for June. Great Cabinets is in the process of preparing the flexible budget and understanding the results.

The flexible-budget variance for variable costs is ________.

Group of answer choices

a. $2,210 unfavorable

b. $137,930 favorable

c. $89,270 favorable

d. $202,275 unfavorable

Actual Results 17,000 Flexible Budget 21,000 Static Budget Sales volume (in units) $ Sales revenues Variable costs $935,000 391,000 $1,155,000 480,270 $ Contribution margin 544,000 $ 674,730 Fixed costs Operating profit 275,800 $268,200 LA TA 268,600 $406,130