Sterling Industries Manufactures Saddles for Show Horses

Sterling Industries manufactures saddles for show horses.Sterling's actual fixed overhead for the year was $123,400.During the year Sterling produced 12,300 saddles using 129,150 direct labor hours.Sterling had budgeted to produce 13,000 saddles and had budgeted to use 130,000 direct labor hours.Sterling's fixed overhead spending variance was $4,200 favorable for the year.What was Sterling's budgeted fixed overhead for the year (if necessary, round your answer to the nearest dollar) ?

A) $140,257
B) $127,600
C) $120,955
D) $128,412