Wendy Wall (WW) Makes Wall Units

Wendy Wall (WW) makes wall units. For the year, the following details have been budgeted. Output, 10,000 units; factory overheads $1,250,000, of which 60% is variable. Each wall unit should take 2.5 hours of direct labor to produce. WW produced 9,500 units with 24,000 DLH used and $1,175,000 actual overhead was incurred. Overhead is allocated based on direct labor hours (DLH) . What is Wendy's total overhead variance?

A) $75,000 over absorbed
B) $12,500 over absorbed
C) $12,500 under absorbed
D) $25,000 over absorbed
E) None of the above