Gregorich Incorporated makes a single product--a critical part used in commercial airline seats. The company has a standard cost system in which it applies overhead to this product based on the standard machine-hours allowed for the actual output of the period. Data concerning the most recent year appear below: Budgeted fixed manufacturing overhead $ 294,490 Budgeted production (a) 35,000 units Standard hours per unit (b) 1.40 machine-hours Budgeted hours (a) (b) 49.000 machine-hours Actual production (a) 30,000 units 1.40 machine-hours Standard hours per unit (b) Standard hours allowed for the actual production (a) (b) 42,000 machine-hours $ 314.490 Actual fixed manufacturing overhead 40.600 machine-hours Actual hours The fixed overhead budget variance is: $62,070 F $20.000 U 89 $62.070 U