Bienestar, Inc., has done a cost analysis for its production of vests. The following activities and cost drivers have been developed:

Activity	Cost Formula
Maintenance	$11,000 + $2 per machine hour
Machining	$55,000 + $3 per machine hour
Inspection	$70,000 + $500 per batch
Setups	$2,000 per batch
Purchasing	$80,000 + $150 per purchase order

Following are the actual costs of producing 75,000 vests: 5,000 machine hours; 10 batches; 20 purchase orders

Maintenance	$20,000
Machining	73,000
Inspection	73,000
Setups	18,000
Purchasing	82,000

What is the budget variance for inspection in an activity-based performance report?

	a.	$1,000 F
	b.	$2,000 F
	c.	$3,000 F
	d.	none of these