At the End of 2019, Dubai Mission Prepared Its Master

At the end of 2019, Dubai Mission prepared its master budget for 2020. Selected amounts from that budget, along with actual results for 2020, are presented below: $$\begin{array} { l r r } & \underline { \text { Budgeted } } & \underline { \text { Actual } } \\\text { Sales } & \$ 180,000 & \$ 210,000 \\\text { Research and development cost } & 25,000 & 20,000 \\\text { Interest revenue } & 7,600 & 7,000 \\\text { Cost of goods sold } & 60,000 & 65,000 \\\text { Marketing costs } & 45,000 & 45,000\end{array}$$ The variance for cost of goods sold could be explained by:

A) Increased rent on their building
B) Actual sales being less than the budget
C) Price increases in raw materials
D) Decreased labour costs

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