Timberlake Company planned for a production and sales volume of 12,500 units. However, the company actually makes and sells 13,500 units.

	Per unit standards				Static Budget					Flexible Budget
Number of units							12,500					13,500
Sales revenue	$	70.00				$	875,000				$	945,000
Variable manufacturing costs:
Materials	$	16.00					200,000					216,000
Labor	$	12.00					150,000					162,000
Overhead	$	4.70					58,750					63,450
Variable general, selling, and administrative costs	$	16.00					200,000					216,000
Contribution margin						$	266,250				$	287,550
Fixed costs
Manufacturing overhead							105,800					105,800
General, selling, and administrative costs							50,000					50,000
Net income						$	110,450				$	131,750

What was the total variable cost volume variance?

Multiple Choice

• $21,300 unfavorable

• $21,300 favorable

• $48,700 unfavorable

• $48,700 favorable