RTC Supply Co Actual Production for the Year Totaled 62,000 Units

RTC Supply Co. produces cleaning equipment for professional cleaners. At the start of the year, RTC estimated variable overhead costs to be $13 per unit and total fixed overhead costs at $300,000 based on a volume of 60,000 units. The detail for the overhead estimates follows: $\begin{array}{lrr}\text { Variable Overhead } &\text { Budget } @ 60,000 \text { units }& \text { Actual Costs }\\\hline \text { Indirect materials } & \$ 480,000 & \$ 469,500 \\\text { Utilities } & 120,000 & 93,000 \\\text { Maintenance } & 180,000 & 224,000 \\\text { Total variable overhead } & 780,000 & 786,500\\\\ \text { Fixed Overhead }\\\hline \text { Supervisor salaries } & 125,000 & 127,000 \\\text { Depreciation } & 150,000 & 145,000 \\\text { Other fixed overhead } & 25,000 & 26,000 \\\text { Total fixed overhead } & 300,000 & 298,000 \\\text { Total overhead costs } & \$ 1,080,000 & \$ 1,084,500\end{array}$ Actual production for the year totaled 62,000 units. How much is the variable overhead flexible budget variance?

A) $4,500 unfavorable
B) $10,000 favorable
C) $21,500 favorable
D) $19,500 favorable