Core Technology Company's operational management team is assessing a production minusvolume variance. Budgeted fixed overhead cost is $390,000. Using past data, one unit of output is budgeted to take 2.0 machine hours and fixed overhead is allocated to actual output at the rate of $20 per machine hour. The actual output is 10,000 units.

Required

Compute the production minusvolume variance for this period and indicate whether the value indicates a favorable, F, or an unfavorable, U, variance.

A. $1,000; F

B. $1,000; U

C. $10,000; F

D. $3,900; U

E.$10,000; U