Wilson Company Uses Flexible Budgets

Multiple Choice

Wilson Company uses flexible budgets. At normal capacity of 8,000 units, budgeted manufacturing overhead is: $32,000 variable and $90,000 fixed. If Wilson had actual overhead costs of $125,000 for 9,000 units produced, what is the difference between actual and budgeted costs?

A) $1,000 unfavorable.
B) $1,000 favorable.
C) $3,000 unfavorable.
D) $4,000 favorable.