Culver, Inc. manufacturers motors used in electric toothbrushes and other small appliances. Culver's fixed overhead rate is $7.60 and the company budgeted 165,000 direct labor hours for the year. During the year Culver produced 320,000 motors and used 164,000 direct labor hours. Culver's fixed overhead spending variance was $3,500 unfavorable for the year. What was Culver's actual fixed overhead for the year?

A. $1,250,000

B. $1,257,000

C. $1,246,000

D. $1,249,000