Loon Industries gathered the following information for the month ended June 30: The static budget volume is 5,000 units: Overhead flexible budget: Number of units Standard machine hours Budgeted variable overhead costs: Budgeted fixed overhead costs: 6,000 8,400 7,000 8,000 9,800 11,200 $37,800 $16,800 $44,100 $16,800 $50,400 $16,800 Actual production was 12,500 units. Actual overhead costs were $28,000 for variable costs and $37,000 for fixed costs. Actual machine hours worked were 16,000 hours. What is the fixed overhead volume variance? (Assume the allocation base for fixed overhead costs is machine hours.) A. $25,200 unfavorable B. $17,500 favorable OC. $17,500 unfavorable D. $25,200 favorable