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Luka Company uses the following overhead standard costs for a single unit of product: 7.5 hours at $13.50 per hour. Actual data for the month

Luka Company uses the following overhead standard costs for a single unit of product: 7.5 hours at $13.50 per hour. Actual data for the month showed overhead costs of $132,000 for 1,800 units produced. What is the difference between actual overhead costs and standard overhead costs allocated to products?

A.

$50,250 favorable

B.

$50,250 unfavorable

C.

$107,700 favorable

D.

$107,700 unfavorable

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