Luka Company uses the following overhead standard costs for a single unit of product: 7.5 hours at $14.00 per hour. Actual data for the month showed overhead costs of $174,000 for 2,000 units produced. What is the difference between actual overhead costs and standard overhead costs allocated to products?

A.

$36,000 unfavorable

B.

$146,000 favorable

C.

$36,000 favorable

D.

$146,000 unfavorable