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 3000 units:
Overhead flexible budget:
Actual production was 6500 units. Actual overhead costs were $22,000 for variable costs and $39,000 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) $53,900 unfavorable
B) $53,900 favorable
C) $18,200 unfavorable
D) $18,200 favorable