Trois Elles Corporation Recently Prepared a Manufacturing Cost Budget for an Output

Trois Elles Corporation recently prepared a manufacturing cost budget for an output of 50,000 units, as follows: $$\begin{array} { l r } \text { Direct materials } & \$ 100,000 \\\text { Direct labor } & 50,000 \\\text { Variable overhead } & 75,000 \\\text { Fixed overhead } & 100,000\end{array}$$ Actual units produced amounted to 60,000. Actual costs incurred were: direct materials, $110,000; direct labor, $60,000; variable overhead, $100,000; and fixed overhead, $97,000. If Trois Elles evaluated performance by the use of a flexible budget, a performance report would reveal a total variance of:

A) $3,000 favorable.
B) $23,000 favorable.
C) $27,000 unfavorable.
D) $42,000 unfavorable.
E) None of the other answers are correct.