Delta Company uses a standard costing system with direct labors hours being the basis (cost driver) for applying overhead.

Delta Companys standard cost card shows the following for one unit of product Gamma.

	Std Qty	Std price (rate)	Std. cost
Direct materials	4.0 pounds	$10.00 per pound	$40.00
Direct labor	2.0 hours	$15.00 per hour	$30.00
Variable Overhead	2.0 hours	$1.00 per DL hour	$ 2.00
Fixed Overhead	2.0 hours	$8.00 per DL hour	$ 16.00
			$88.00

During the month of August the following was recorded by the company relative to its production of product Gamma:

Planned level of production	5,000 units
Actual level of production	5,050 units
Direct materials purchased	22,000 pounds
Cost of direct materials purchased	$226,600
Direct materials placed into production	19,900 pounds
Direct labor incurred	10,200 hours
Actual direct labor cost	$151,470
Actual variable overhead cost	$12,240
Actual fixed overhead cost	$73,440

Compute the Fixed Overhead volume variance for the month.

• $800 F

• $720 F

• $720 U

• $800 U