Chong Corporation recently prepared a manufacturing cost budget for an output of 50,000 units, as follows:

Direct materials $100,000

Direct labor 50,000

Variable overhead 75,000

Fixed overhead 100,000 Actual units produced amounted to 60,000. Actual costs incurred were: direct materials, $110,000; direct labor, $60,000; variable overhead, $100,000; and fixed overhead, $97,000. If Chong evaluated performance by the use of a flexible budget, a performance report would reveal a total variance of: A.$3,000 favourable. B.$23,000 favorable. C.$27,000 unfavorable. D.$42,000 unfavorable. E.None of the answers is correct.