Channel One Industries uses a standard costing system to apply manufacturing costs to its production process. InMay, Channel One anticipated producing2,450 units with fixed manufacturing overhead costs allocated at$7.40 per direct labor hour with a standard of 1.5 direct labor hours per unit. InMay, actual production was3,200 units and actual fixed manufacturing overhead costs were$23,000.

What was ChannelOne's fixed manufacturing overhead budget variance inMay?

A. $4,195 unfavorable B. $8,325 unfavorable C. $8,325 favorable D. $4,195 favorable