Adams, Inc

Adams, Inc., uses the following standard to produce a single unit of its product: Overhead (2 hrs. @ $3/hr.) = $6
The flexible budget for overhead is $100,000 plus $1 per direct labor hour. Actual data for the month show overhead costs of $150,000 based on 24,000 units of production. The overhead volume variance is:

A) $10,000 favorable.
B) $12,000 favorable.
C) $4,000 unfavorable.
D) $16,000 unfavorable.
E) $36,000 unfavorable.