Practice exam, need correct answer

Augusta Manufacturing uses a standard cost system costs. At the close of last year, the company showed the following results: with machine-hours (MHs) as the activity base for overhead Actual units produced 10,000 units Actual fixed manufacturing overhead (FMOH) FMOH budget variance S 861,000 S 42,000 Favorable Information related to machine-hours is as follows: Standard machine-hours per unit Budget (denominator) level of activity 2 MHs per unit 21,000 MHs 20,050 MHs Actual machine-hours used The company's FMOH volume variance for the year would be closest to: A. S 1,000 Unfavorable B. S 43,000 Favorable C. s 40,850 Favorable D. S 43,000 Unfavorable 19 E. None of the above