44)

W Company made 4,500 units last year, and the standard costing system stated that each unit should take 2.5 machine hours to make. The fixed overhead application rate was $3.10 per machine hour. The budgeted fixed overhead for the year was $38,750. Actual fixed overhead cost for the year was $38,000. Actual machine hours for the year were 10,000. How much was the fixed overhead volume variance?

Group of answer choices

$3,875 unfavorable

$3,125 unfavorable

$3,125 favorable

$6,063 unfavorable

$3,875 favorable