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