Winston Co. had two products code named X and Y. The firm had the following budget for August:

Product X Product Y Total

Sales $286,000 $520,000 $806,000

Variable Costs 189,800 218,400 408,200

Contribution Margin $ 96,200 $ 301,600 $ 397,800

Fixed costs 50,000 108,000 158,000

Operating Income $ 46,200 $ 193,600 $ 239,800

Selling Price per unit $ 110.00 $ 50.00

On September 1, the following actual operating results for August were reported:

Product X Product Y Total

Sales $ 360,000 $ 540,000 $ 900,000

Variable Costs 195,000 216,000 411,000

Contribution Margin $ 165,000 $ 324,000 $ 489,000

Fixed costs 50,000 108,000 158,000

Operating Income $ 115,000 $ 216,000 $ 331,000

Units Sold 3,000 9,000

Total industry volume for both products X and Y was estimated to be 130,000 units at the time of the budget. Actual industry volume for the period for products X and Y was 100,000 units.

The sales quantity variance for Product Y is:

Multiple Choice:

A. $33,250 favorable.

B. $6,465 favorable.

C. $23,200 unfavorable.

D. $6,750 favorable.

E. $78,000 favorable.