Lantern Corporation recently prepared a manufacturing cost budget for an output of 50,000 units, as follows: 7. Direct materials Direct labor Variable overhead Fixed overhead $100,000 50,000 75,000 100,000 Actual units produced amounted to 60,000. Actual costs incurred were: direct materials, $110,000; direct labor, $60,000; variable overhead, $100,000; and fixed overhead, $97,000. If Lantern evaluated performance by the use of a flexible budget, a performance report would reveal a total variance of: A. $3,000 favorable. B. $23,000 favorable. C. $27,000 unfavorable. D. $42,000 unfavorable. E. none of the above amounts States) ro