1. $2,000 unfavourable.

2. $4,000 favourable.

3. $5,000 unfavourable.

4. $7,000 unfavourable.

Carvale Cabinets set the following standard cost per unit for 2008. Fixed overhead (4 machine hours at $10) Variable overhead (4 machine hours at $8) $40 $32 The standards were set based on a capacity of 20,000 machine hours. During the year, 5,100 units were produced. Fixed overhead Variable overhead Machine hours worked $205 000 $165 750 19 800 What was Carvale's fixed overhead budget variance