The actual information pertains to the third quarter. As part of the budgeting process, the Duck Decoy Department of Paralith Incorporated had developed the following static budget for the third quarter. Duck Decoy is in the process of preparing the flexible budget and understanding the results.

Actual Flexible Static Results Budget Budget Sales volume (in units) 16,000 12,000

Sales revenues $241,000 $ $233,000 Variable costs 148,000 $ ____ 183,000

Contribution margin 93,000 $ 50,000

Fixed costs 36,000 $ ____ 33,000 Operating profit $57,000 $ $17,000

The flexible-budget variance for variable costs is: (Round any intermediate calculations to the nearest cent, and round your final answer to the nearest dollar.) Select one: a. $37,000 unfavorable b. $35,000 favorable c. $35,000 unfavorable d. $96,000 favorable