james Industries manufactures Bluetooth headphones. The company applies fixed manufacturing overhead based on standard direct labour hours. The following information relates to the company's budgeted and actual fixed manufacturing overhead costs for the year:

Static budget cost $ 962,500 Actual cost $1,011,000 Budgeted units of production 55,000 Budgeted direct labour hours per unit 3.5 hours Actual units of production 55,200 Actual direct labour hours 192,000 Based on the above information, what are the fixed manufacturing overhead budget and volume variances for the year?

a) Budget variance: $45,000 U; Volume variance: $ 3,500 U

b) Budget variance: $48,500 U; Volume variance: $ 0

c) Budget variance: $48,500 U; Volume variance: $ 3,500 F

d) Budget variance: $48,500 U; Volume variance: $52,176 F