The Big Company's expected production volume was 36,000 units at 9,000 hours of labor. The fixed overhead rate is KD 3 per hour at 36,000 units. Actual fixed overhead was KD 26,000 for 32,000 units of production. Which of the following is correct?

Select one:

a.Cost variance, KD 1,000 F; volume variance, KD 3,000 U.

b.Cost variance, KD 3,000 F; volume variance, KD 2,000 U.

c.Cost variance, KD 1,000 U; volume variance, KD 3,000 F.

d.Cost variance, KD 1,000 U; volume variance, KD 3,000 U.