Cholla Companys standard fixed overhead rate is based on budgeted fixed manufacturing overhead of $10,500 and budgeted production of 33,000 units. Actual results for the month of October reveal that Cholla produced 29,000 units and spent $10,800 on fixed manufacturing overhead costs.

Calculate Chollas fixed overhead spending variance.(Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable.)

Managerial Accounting.