Bonehead Co. has the following factory overhead costs for the most recent period:

Standard overhead applied to this periods production	$	72,000
Flexible budget for overhead based on output (i.e., units produced)		65,000
Total budgeted overhead in the master (static) budget		86,000
Actual total overhead cost incurred during the period		76,000

The fixed overhead production volume variance for Bonehead Co. this period, to the nearest whole dollar, is:

Multiple Choice

• $4,000 unfavorable.

• $7,000 favorable.

• $10,000 favorable.

• $11,000 unfavorable.

• $14,000 unfavorable.