During July, Johnson Company Had Actual Sales of $150,000 Compared

During July, Johnson Company had actual sales of $150,000 compared to budgeted sales of $162,000. Actual cost of goods sold was $105,500, compared to a budget of $108,300. Monthly operating expenses, budgeted at $22,400, totaled $20,000. Interest revenue of $2,000 was earned during July but had not been included in the budget. The performance report for July would show a net income variance of

A) $9,600 Favourable.
B) $4,800 Favourable.
C) ($9,600) Unfavourable.
D) ($4,800) Unfavourable.