The static budget, at the beginning of the month, for Helloise Dàƒ ©cor Company follows

Static budget:
Sales volume: 2,000 units: Sales price: $58.00 per unit
Variable cost: $14.00 per unit: Fixed costs: $26,000 per month
Operating income: $62,000

Actual results, at the end of the month, follows:
Actual results:
Sales volume: 1,850 units: Sales price: $59.00 per unit
Variable cost: $18.00 per unit: Fixed costs $38,000 per month
Operating income: $37,850

Calculate the sales volume variance for variable costs.
A) $6,600 U
B) $2,100 F
C) $150 U
D) $6,600 F

B .B)
Actual Results Flexible Budget Variance Flexible Budget Sales Volume Variance Static Budget
Units 1,850 0 1,850 150 U $2,000
Sales Revenue* $109,150 $1,850 F $107,300 $8,700 U $116,000
Variable Costs** 33,300 7,400 U 25,900 $2,100 F 28,000
Contribution Margin $75,850 $5,550 U $81,400 $6,600 U $88,000
Fixed Costs 38,000 12,000 U 26,000 $0 26,000
Operating Income/(Loss) $37,850 $17,550 U $55,400 $6,600 U $62,000

* Sales price per unit x Units
** Variable cost per unit x Units