When a company's actual income statement results differ from its master budget income statement, which of the following is true?

If actual variable expenses are larger than master budget variable expenses, it is considered a faworable variance.

If actual revenues are larger than master budget revenues, it is considered a favorable variance.

If actual variable expenses are smaller than master budget variable expenses, it is considered an unfavorable variance.

If actual revenues are smaller than master budget revenues, it is considered a favorable variance.