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Brave Company produces motorcycle helmets. They budgeted to sell 100,000 helmets for the coming year at a variable cost of \$50 a helmet with budgeted annual fixed costs of \$5,000,000 a year. Bravo budgets that it will be able to sell their helmets for \$120 each. Actual results for the year were: selling price of \$115 a helmet for sales and production of 105,000 helmets, total actual variable costs of \$5,000,000 and total actual fixed costs of \$5,000,500.

What is the flexible budget variance for variable costs?


\$525,000 Unfavorable


\$275,500 Unfavorable


\$250,000 Favorable


\$500 Unfavorable

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