1. A companys manufacturing plans were as follows:

   Units to be manufactured: 8,000 units

   Budgeted variable costs: $24,000

   Budgeted fixed costs: $50,000

   Budgeted total cost: $74,000

   Later, the company actually produced 7,500 units, and incurred a total cost of $73,000 (variable costs of $24,000 and fixed costs of $49,000). The overall variance was:

   	A.	$1,500, Unfavorable
   	B.	$500, Unfavorable
   	C.	$1,000, Favorable
   	D.	$3,625, Unfavorable