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

Actual Flexible Static

Results Budget Budget

Sales volume (in units) 12,000 XXXX 15,000

Sales revenues $600,000 $ XXXX $750,000

Variable costs 307,200 $ ____XXXX 360,000

Contribution margin 292,800 $ XXXX 390,000

Fixed costs 274,800 $ __XXXX___ 270,000

Operating profit $ 18,000 $ XXXX $ 120,000

The spending variance for operating income is;

a. 42,000 unfavorable

b. 102,000 unfavorable

c. 19,200 unfavorable

d. 24,000 unfavorable