Central Table Inc. has prepared a static budget at the beginning of the month. At the end of the month the following information is available:

Static Budget: Sales volume: 2,000 units: Price $50 per unit Variable costs: $12 per unit: Fixed costs: $25,000 per month Operating Income: $51,000

Actual Results: Sales volume: 1,800 units: Price $58 per unit Variable costs: $16 per unit: Fixed costs: $35,000 per month Operating Income: $40,600

Calculate the flexible budget variance for variable costs.

$7,200 U

$3,960 F

Incorrect.

$2,970 U

$5,490 U