McKinley Manufacturing uses a standard cost system with machine-hours (MH) as the activity base for overhead costs. At the close of last year, the company showed the following results: Actual units produced 11.000 units Actual fixed manufacturing overhead (FMOH) $ 861,000 FMOH budget variance $ 42,000 Favorable Information related to machine-hours is as follows: Standard machine-hours per unit unit Budget (denominator) level of activity 21,000 MHs Actual machine-hours used 20,050 MHS 2 MHs per 14 The company's FMOH volume variance for the year would be closest to: A $ 43,000 Unfavorable B. $ 40,850 Favorable C. $ 43,000 Favorable D. $ 40,100 Unfavorable E. None of the above