Union Company's Corporate Payroll Department Is a Cost Center, and Prepares

Union Company's corporate payroll department is a cost center, and prepares monthly performance reports. Union uses the management by exception approach, based on the dollar amounts of the variances. Based on the performance report for the payroll department shown below, on which of the following variances would the company focus first for investigation and explanation?
$\begin{array}{|c|c|c|c|c|c|c|}\hline \text { Cost Center } & & \text { Flexible } & \text { Flexible Budget } \\ \hline \text { Performance Report } & \text { Actual } & \text { Budget } & \text { Variance } & \mathrm{U} / \mathrm{F} & \% \text { variance } & \mathrm{U} / \mathrm{F} \\\hline \text { Salary \& benefits } & \$ 46,000 & \$ 44,500 & \$ 1,50 & \text { U } & 3.4 & \mathrm{U} \\\hline \text { Rent expense } & 12,750 & 11,900 & 850 & \text { U } & 7.1 \% & \mathrm{U} \\\hline \text { Depreciation expense } & 8,900 & 9,080 & 180 & & 2.0 \% & \text { F } \\\hline \text { Supply expense } & 1,890 & 2,200 & 310 & \bar{F} & 14.1 \% & \text { F } \\\hline \text { Miscellaneous expense } & 4,320 & 4,120 & 200 & \text { U } & 4.9 \% & \text { U } \\\hline&\$73,860&\$71,800&\$2,060&\text { U } &2.9\%&\text { U } \\\hline\end{array}$

A) Rent expense
B) Miscellaneous expense
C) Salary and benefits
D) Depreciation expense