Use the Following to Answer Questions

Multiple Choice

Use the following to answer questions:
Arco Inc.'s fixed overhead budget is $400,000; the standard fixed overhead rate is $5 per direct labor hour or $10 per unit of product. During the immediate past year Arco produced 45,000 units of product, incurred $385,000 of fixed overhead, and used 82,500 direct labor hours.
-How much is Arco's fixed overhead budget variance?

A) $15,000 unfavorable
B) $15,000 favorable
C) $50,000 unfavorable
D) $50,000 favorable