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Question 1: Underwater Sports Equipment Company projected sales of 78,000 units at a unit sales price of $12 for the year. Actual sates for the year were 76,000 units at $15 per unit. Variable costs were budgeted at $3 per unit and the actual amount was $6 per unit. Budgeted fixed costs totaled $385,000, white actual fixed costs amounted to $446,000. What is the flexible budget variance for variable costs?
Option A. $234.000 unfavourable
Option B. $228,000 unfavourable
Option C. $228,000 favourable
Option D. $234,000 favourable
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