Carvelle Cabinets set the following standard cost per unit for 2008.

Fixed overhead (4 machine hours at $10)

Variable overhead (4 machine hours at $8)

$40

$32

The standards were set based on a capacity of 20 000 machine hours.

During the year, 5 100 units were produced.

Fixed overhead

$205 000

Variable overhead

$165 750

Machine hours worked

19 800

What was Carvelle's fixed overhead volume variance?

Select one:

a. $4 000 favourable

b. $1 000 unfavourable

c. $2 000 favourable

d. $4 000 unfavourable