Denominator hours for May 20,000

Actual hours worked during May 15,500

Standard hours allowed for May 16,000

Flexible budget fixed overhead cost$60,000

Actual fixed overhead costs for May$63,500

What is the fixed overhead spending (price) variance for May?

A.

$12,000 favorable.

B.

$3,500 favorable.

C.

$3,500 unfavorable.

D.

$12,000 unfavorable.