Formidable Company collected the following information:

Standard costs per unit:
Variable overhead	4 machine hours @ $6 per machine hour
Fixed overhead	4 machine hours @ $10 per machine hour
Actual output	20,000 units
Denominator (normal capacity) output	21,000 units
Actual machine hours	79,000 machine hours
Actual variable overhead cost	$540,000
Actual fixed overhead cost	$810,000

Using the two variance method, what is the budget variance?

a.$30,000 (F)

b.$30,000 (U)

c.$70,000 (F)

d.$70,000 (U)