The Hawkins Company uses a standard costing system in which manufacturing overhead is applied to units of product on the basis of direct labor-hours. During February, the company actually used 9,200 direct labor-hours and made 2,900 units of finished product. The standard cost card for one unit of product includes the following:

Variable Overhead: 3 DLHs @ $4.75 per DLH

Fixed overhead: 3 DLHs @ $3.00 per DLH

For February, the company incurred $28,450 in fixed overhead costs and recorded a $900 favorable volume variance. The amount of fixed overhead cost contained in the company's budget for February is ( static budget for fixed overhead):

A) $27,000

B) $27.550

C) $25,200

D) $29,350

Explain your answer please.