Fixed Manufacturing Overhead Was Budgeted at $105,000, and 25,000 Direct

Multiple Choice

Fixed manufacturing overhead was budgeted at $105,000, and 25,000 direct labor hours were budgeted. If the fixed overhead volume variance was $4,000 unfavorable and the fixed overhead spending variance was $1,500 favorable, fixed manufacturing overhead applied must be

A) $109,000.
B) $106,500.
C) $106,500
D) $101,000.