Big Z, Inc. manufactures music CDs. Big Z planned to produce 108,000 CDs during the coming year for which the standard cost for each CD is $4.10 as follows:

Plastic (0.25 pounds at $6.00 per pound)		$1.50
Labor (0.10 hours at $12.00 per hour)		1.20
Overhead ($0.80 fixed and $0.60 variable)		1.40
Total		$4.10

The following information summarizes Big Z's results for the year:

Actual production		110,000 CDs
Actual variable overhead		$60,000
Actual fixed overhead		$83,000

How much is the overhead controllable variance?

$6,000 favorable

$3,488 favorable

$4,510 favorable

$9,400 favorable