Medina Sports Manufactures Snowboards

Medina Sports manufactures snowboards. Medina had budgeted 12.5 direct labor hours per unit and projected that 2,120 units would be produced. The budgeted fixed manufacturing overhead costs were $530,000. The actual overhead costs for the year were $544,000 and 2,150 units were produced. What is the volume variance?

A) $12,000 favorable
B) $12,000 unfavorable
C) $7,500 favorable
D) $7,500 unfavorable