Patridge Company uses a standard cost system in which it applies manufacturing overhead to units of product on the basis of direct labour hours. The information below is taken from the company's flexible budget for manufacturing overhead: Percent of Capacity 70% 80% 90% Direct Labour Hours 21,000 24,000 27,000 Variable Overhead $42,000 $48,000 $54,000 Fixed Overhead $108,000 $108,000 $108,000 Total Overhead $150,000 $156,000 $162,000 During the year, the company operated at exactly 80% of capacity, but it applied manufacturing overhead to products based on the 90% level. What was the company's fixed overhead volume variance for the year? A) $12,000 unfavourable. B) $12,000 favourable. C) $6,000 favourable. D) $6,000 unfavourable.