The following information was drawn from the accounting records of Smith Company

Rooney Manufacturing Company established the following standard price and cost data.

Sales price	$	8.60	per unit
Variable manufacturing cost	$	3.20	per unit
Fixed manufacturing cost	$	3,000	total
Fixed selling and administrative cost	$	600	total

Rooney planned to produce and sell 3,000 units. Actual production and sales amounted to 3,200 units.

Required

1. Determine the sales and variable cost volume variances.
2. Classify the variances as favorable (F) or unfavorable (U).

4. Determine the amount of fixed cost that will appear in the flexible budget.
5. Determine the fixed cost per unit based on planned activity and the fixed cost per unit based on actual activity.

Based on this information the

A. sales price flexible budget variance is a $2,700 unfavorable variance.

B. sales price flexible budget variance is a $700 favorable variance.

C. sales price flexible budget variance is a $2,700 favorable variance.

D. sales price flexible budget variance is a $2,000 favorable variance.