1. A firm has applies variable overhead with a standard rate of $20 per machine hour (assume there is no fixed overhead for this problem). The firm's actual finished goods units were 10,000. The standard quantity is 2 machine hours per finished good unit.

   The firm's actual machine hours were 21,000, with an actual cost per machine hour of $22.

   What is the firm's variable overhead quantity variance (round final answer to nearest cent if necessary)?

   	a.	$22,000 favorable
   	b.	$22,000 unfavorable
   	c.	$20,000 unfavorable
   	d.	$20,000 favorable