Hanson Produces Pressure Washers Actual Production for the Year Totaled 62,000 Units

Hanson produces pressure washers.The detail for the overhead estimates follows: $\begin{array}{lrr}\text { Variable Overhead } &\text { Budget }(\alpha) 60,000 \text { units } & \text { Actual Costs }\\\hline\text { Indirect materials } & \$ 480,000 & \$ 469,500 \\\text { Utilities } & 120,000 & 93,000 \\\text { Maintenance } & 180,000 & 224,000 \\\text { Total variable overhead }&780,000&786,500\\\\\text { Fixed Overhead }\\\hline \text { Supervisor salaries } & 125,000 & 127,000 \\\text { Depreciation } & 150,000 & 145,000 \\\text { Other fixed overhead } & 25,000 & 26,000 \\\text { Total fixed overhead } &{300,000}&{298,000} \\\text { Total overhead costs } & \$ 1,080,000 & \$ 1,084,500\end{array}$ Actual production for the year totaled 62,000 units.How much is the overhead volume variance?

A) $72,000 favorable
B) $77,580 favorable
C) $63,940 favorable
D) $74,000 favorable