Assume that the master budget for Cannondale shows total variable expenses of $10,000. The budget was based on production of 5,000 units. Cannondale sells all units it produces. Budgeted net income was $5,000. Actual production and sales was 4,500. What is the variable expense variance?

$5,000
$4,500
$500
$1,000

2. Cannondale makes a certain part that it sells for $10 each. The variable costs are $6 per part. The annual fixed costs are $2,000. How many of this part must Cannondale sell to breakeven?

a. 333
b. 200
c. 1,000
d. 500