Appen Ltd. incurred fixed manufacturing costs of $25,000 during 2020. Other information for 2020 includes:

The budgeted denominator level is 2,500 units.

Units produced total 2,600 units.

Units sold total 1,600 units.

Variable cost per unit is $5

Beginning inventory is zero.

The fixed manufacturing cost rate is based on the budgeted denominator level. There is no spending variance for fixed manufacturing cost.

Under absorption costing, calculate the production-volume variance. Clearly label whether the variance is favourable or unfavourable (Round any intermediary calculations to the nearest cent and your final answer to the nearest dollar.) Show all workings.