The Baldwin Company, in its master budget for 2010, predicted total sales of $160,000, variable costs of

Question:

The Baldwin Company, in its master budget for 2010, predicted total sales of $160,000, variable costs of $48,000, and fixed costs of $52,000 ($24,000 manufacturing and $28,000 nonmanufacturing). Actual sales revenue for 2010 turned out to be $180,000. Actual costs were as follows: variable, $54,000, and fixed, $50,000. What was the total static budget (operating-income) variance for 2010? Was this total variance favorable (F) or unfavorable (U)?