Megan, Incorporated uses the following standard costs per unit for one of its products: Direct labor (2.0 hours @ $5.00 per hour) = $10.00; overhead (2.0 hours @ $2.50 per hour) = $5.00. The flexible budget for overhead is $150,000 plus $1.00 per direct labor hour (DLH). Actual data for the past month show total overhead costs of $229,000, total fixed overhead of $136,000, 81,000 hours worked, and 50,000 units produced.

The fixed overhead production volume variance for Megan, Incorporated for the past month was:

PLEASE SHOW ALL WORK AND STEPS

Multiple Choice

A. $4,000 unfavorable.

B. $6,000 unfavorable.

C. $0.

D. $24,000 unfavorable.

E. $20,000 unfavorable.