Moonbeam Company uses a standard cost system for its production process and applies overhead based on direct labor hours. The following information is available for September when Moonbeam produced 5,000 units:

1. Standard:DLH per unit3.00
2. Variable overhead per DLH$1.80
3. Fixed overhead per DLH$3.25
4. Budgeted variable overhead$27,250
5. Budgeted fixed overhead$49,500
6. Actual:Direct labor hours16,000
7. Variable overhead$31,325
8. Fixed overhead$49,750

1. Refer to Moonbeam Company. Using the four-variance approach, what is the fixed overhead spending variance?

a.$2,250 F

b.$1,000 U

c.$250 U

d.$250 F