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. Sales volume (in units) Sales revenues Variable costs Contribution margin Fixed costs Operating profit Actual Results Flexible Budget Static Budget 17,000 15,000 $239,000 $ $234,000 144,000 180,000 95,000 54,000 40,000 31,000 $55,000 $ $23.000 The flexible-budget variance for variable costs is final answer to the nearest dollar.) (Round any intermediate calculations to the nearest cent, and round your A. $36,000 favorable B. $60,000 favorable O C. $36,000 unfavorable D. $16,941 unfavorable Answer the following question(s) using the information below. Konrade's Engine Company manufactures part TE456 used in several of its engine models. Monthly production costs for 1,000 units are as follows: Direct materials $40,000 Direct labour 10,000 Variable overhead costs 30,000 Fixed overhead costs 20,000 Total costs $100,000 It is estimated that 10% of the fixed overhead costs assigned to TE456 will no longer be incurred if the company purchases TE456 from the outside supplier. Konrade's Engine Company has the option of purchasing the part from an outside supplier at $85 per unit. O A. increase by $13,000. OB. decrease by $35,000. O C. decrease by $3,000. OD. increase by $15,000. O E. decrease by $5,000