The production team for Take Eight, Inc., a manufacturer of pillow top mattresses, recently prepared a manufacturing cost budget for an output of 50,000 mattresses, as follows:

direct materials	$100,000
direct labor	$50,000
variable overhead	$75,000
fixed overhead	$100,000

Actual costs incurred during the production of 60,000 mattresses were; direct materials, $110,000; direct labor, $60,000; variable overhead, $100,000; and fixed overhead, $97,000. If Take Eight evaluated performance by the use of a flexible budget, determine the dollar amount of the MOH flexible budget variance and if the variance is favorable or unfavorable.

A.

$23,000 favorable

B.

$3,000 unfavorable

C.

$3,000 favorable

D.

$7,000 unfavorable

E.

$42,000 unfavorable