Easel Manufacturing Budgeted Fixed Overhead Costs of $3

Multiple Choice

Easel Manufacturing budgeted fixed overhead costs of $3.75 per unit at an anticipated production level of 1150 units. In July Easel incurred actual fixed overhead costs of $4500 and actually produced 1100 units. What is Easel's fixed overhead budget variance for July?

A) $187.50 favorable
B) $187.50 unfavorable
C) $375.00 favorable
D) $375.00 unfavorable