Fletcher Company Collected the Following Data Regarding Production of One

Fletcher Company collected the following data regarding production of one of its products. Compute the variable overhead spending variance. $\begin{array}{lll}\text { Direct labor stendard (2 hrs. @ } \$ 12.75 / \mathrm{hr} \text {.) } & \$ 25.50 &\text {per finished unit}\\\text { Actual direct labor hours } & 81,500&\text { hrs}\\\text { Budgeted units } & 42,000&\text {units}\\\text {Actual finished units produced}&40,000&\text {units}\\\text {Standad variable OH rate (2 hrs. @ \$14.30/hr) }&\$28.60&\text {per finished unit}\\\text {Standard fixed OH rate \( (\$ 336,000 / 42,000 \) units) }&\$8.00 &\text {per unit}\\\text {Actual cost of variable overhead costs incurred}&\$1,140,000\\\text {Actual cost of fixed overhead costs incurred} &\$ 338,000 \end{array}$

A) $4,000 favorable.
B) $21,450 favorable.
C) $4,000 unfavorable.
D) $21,450 unfavorable..
E) $25,450 favorable.