Draco, Inc. has the following overhead standards: Variable overhead: 4 hours at $8 per hour Fixed overhead: 4 hours at $10 per hour The standards were based on a planned activity of 20,000 machine hours when 5,000 units were scheduled for production. Actual data follow. Variable overhead incurred: $167,750 Fixed overhead incurred: $210,000 Machine hours worked: 19,800 Actual units produced: 5,100 Draco's fixed-overhead budget variance is:

$6,000 unfavorable.

$7,000 unfavorable.

$10,000 unfavorable.

$12,000 unfavorable.

None of the other answers are correct.