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

	Static Budget		Flexible Budget		Actual Results
Sales	$ 10,000		$ 12,000		$ 12,700
Cost of Goods Sold	(6,000)		(7,200)		(6,900)
Gross Margin	4,000		4,800		5,800
Variable Cost	(2,000)		(2,400)		(2,600)
Fixed Cost	(1,000)		(1,000)		(1,300)
Net Income	$ 1,000		$ 1,400		$ 1,900

Based on this information the

cost of goods sold flexible budget variance is a $300 unfavorable variance.

cost of goods sold volume variance is a $300 favorable variance.

cost of goods sold flexible budget variance is a $1,200 favorable variance.

cost of goods sold volume variance is a $1,200 unfavorable variance.