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Today Company has the following information:

Actual operating loss at 5,000 units $(11,000)
Budgeted operating income at 5,000 units $5,000
Budgeted operating income at 10,000 units $12,000
Planned level of operations 10,000 units
Actual level of operations 5,000 units

Assume the cost driver of product costs is units of production. What is the flexible budget variance for operating income?

A. $11,000 Unfavorable

B. $16,000 Favorable

C. $16,000 Unfavorable

D. $5,000 Unfavorable

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