Zhongfang Consumer Products Has a Small Car Division That Operates

Zhongfang Consumer Products has a small car division that operates as a profit center. Below is a partially completed performance report for the first quarter. $$\begin{array} { | l | r | r | r | r | r | l | } \hline & & & \text { Flexible Budget } & & & \\\hline & { \text { Actual } } & \text { Flexible Budget } & \text { Variance } & \text { U/F } & \text { \% variance } & \text { U/F } \\\hline \text { Sales Revenue } & \$ 688,000 & \$ 700,000 & & & & \\\hline \text { Variable expenses } & 309,000 & 320,000 & & & & \\\hline \text { Contribution margin } & 379,000 & 380,000 & & & & \\\hline \text { Traceable fixed expenses } & 371,000 & 368,000 & & & & \\\hline \text { Division margin } & \$ 8,000 & \$ 12,000 & & & & \\\hline\end{array}$$
- How much is the percentage variance for variable expenses?

A) 1.7 % F
B) 1.7 % U
C) 3.4 % U
D) 3.4 % F