The following information is from the static budget of AAA plc for 2016 .

Expected production and sales	5,400 units
Expected selling price per unit	$ 850
Total fixed costs	$1,110,000

Standard quantities, standard prices and standard unit costs follow for direct materials and direct manufacturing labor:

	Standard Quantity	Standard Price	Standard Unit Cost
Direct materials	10 pounds	$10 per pound	$100
Direct manufacturing labor	4 hours	$26 per hour	$104

During 2016, actual number of units produced and sold was 5,350, at an average selling price of $800. Actual cost of direct materials used was $ 1,149,400, based on 70,000 pounds purchased at $16.42 per pound. Direct manufacturing labor hours actually were 17,000 at the rate of $ 33.70 per hour. As a result, actual direct manufacturing labor costs were $572,900. Actual fixed costs were $1,200,000. There were no beginning or ending inventories.

Revenues and costs for 2016 are as under:

2016	Static Budget	Actual
Total costs	$2,211,600	$2,922,300
Revenues	$4,590,000	$4,280,000

What is the sales-volume variance of operating income?

Select one:

a. $1,020,000 unfavorable

b. $32,300 unfavorable

c. none of the given options

d. $988,400 unfavorable

e. $32,000 favorable