Benson Company, which uses a standard cost system, budgeted $600,000 of fixed overhead when 40,000 machine hours were anticipated. Other data for the period were:
Actual units produced: 10,000
Standard production time per unit: 3.9 machine hours
Fixed overhead incurred: $620,000
Actual machine hours worked: 42,000
Benson's fixed-overhead budget variance is:
A. $10,000 Favorable
B. $15,000 Favorable
C. $20,000 Favorable
D. $15,000 Unfavorable
E. $20,000 Unfavorable