A company uses a standard costing system. At the end of the current year, the company provides the following overhead information.

Actual overhead incurred
Variable	$86,000
Fixed	$64,500
Budgeted fixed overhead	$65,000
Fixed overhead rate (per direct labor hour)	$ 5
Standard hours allowed for actual production	12,000
Actual labor hours used	11,000

What amount is the volume variance?

.$5,000 favorable

b.$2,500 favorable

c.$2,500 unfavorable

d.$5,000 unfavorable