The following report is given for a factory. The company had a plan to make 400 units of Product K for $1,500. However, the factory actually made 500 units of K and incurred $1,750. Refer to the information given below.

Budget Actual

Cost 400 units 500 units

Variable $800 $1,100

Fixed $700 $650

Total Cost $1,500 $1,750

How much is the variance for all costs together?

		$125, Favorable
		$250, Unfavorable
		$50, Unfavorable
		$200, Favorable
		$100, Unfavorable