Enberg Company, Which Applies Overhead to Production on the Basis

Multiple Choice

Enberg Company, which applies overhead to production on the basis of machine hours, reported the following data for the period just ended:
Actual units produced: 14,800
Actual fixed overhead incurred: $791,000
Standard fixed overhead rate: $13 per hour
Budgeted fixed overhead: $780,000
Planned level of machine-hour activity: 60,000
If Enberg estimates four hours to manufacture a completed unit, the company's fixed-overhead volume variance would be:

A) $10,400 favorable.
B) $10,400 unfavorable.
C) $11,000 favorable.
D) $11,000 unfavorable.
E) None of the other answers are correct.