A furniture manufacturer has a standard costing system based on machine hours (MHs) as the measure of activity. Data from the company's flexible budget for manufacturing overhead are given below:

Denominator Level of Activity	3,300 MHs
Overhead Costs at the Denominator Activity Level:
Variable Overhead Cost	$31,845
Fixed Overhead Cost	$40,425

The following data pertain to operations for the most recent period:

Actual Hours	3,400 MHs
Standard Hours Allowed for the Actual Output	3,078 MHs
Actual Total Variable Overhead Cost	$32,980
Actual Total Fixed Overhead Cost	$38,975

What was the fixed overhead budget variance for the period, rounded to the nearest dollar?

		$1,270 favorable
		$1,450 favorable
		$2,675 unfavourable
		$3,691 favorable