For the month of April, budgeted sales were $100,000 and budgeted cost of goods sold was $80,000.

Question:

For the month of April, budgeted sales were $100,000 and budgeted cost of goods sold was $80,000. Actual sales were $80,000 and actual cost of goods sold amounted to $90,000. In preparing its monthly performance report:
A) An unfavorable gross profit variance of $10,000.
B) A favorable gross profit variance of $20,000.
C) None of these choices.
D) An unfavorable gross profit variance of $20,000.