Litchfield Industries Gathered the Following Information for the Month Ended

Multiple Choice

Litchfield Industries gathered the following information for the month ended June 30:
The static budget volume is 5,500 units:
Overhead flexible budget:

Actual production was 12,000 units.Actual overhead costs were $28,000 for variable costs and $37,000 for fixed costs.Actual machine hours worked were 16,000 hours.
What is the fixed overhead volume variance? (Assume the allocation base for fixed overhead costs is machine hours. )

A) $42,250 unfavorable
B) $42,250 favorable
C) $36,400 unfavorable
D) $36,400 favorable