Answer the following questions using the information below:

ABC Corp. used the following data to evaluate its current operating system.

The company sells items for $21 each and used a budgeted selling price of $21 per unit.

Actual Budgeted

Units sold 180,000 units 185,000 units

Variable costs $1,080,000 $1,295,000

Fixed costs $ 800,000 $ 775,000

1) What is the static-budget variance of revenues?

A) $105,000 favorable

B) $105,000 unfavorable

C) $8,000 favorable

D) $8,000 unfavorable

2) What is the static-budget variance of variable costs?

A) $25,000 favorable

B) $25,000 unfavorable

C) $215,000 favorable

D) $215,000 unfavorable

PLEASE SPECIFY WHY THEY ARE UNFAVORABLE AND FAVORABLE