The Main Corporation, which applies fixed overhead on the basis of actual direct labor-hours, has provided you with the following information:

Fixed overhead spending variance

$ 5,000 F

Actual direct labor hours used

25,000 Hours

Static budget hours

20,000 Hours

Fixed overhead applied

$ 260,000

What was the actual fixed overhead incurred?

a.
$ 213,000

b.
$ 235,000

c.
$ 265,000

d.
$ 203,000