Different management levels in Bates, Inc., require varying degrees of managerial accounting information. Because of the need to comply with the managers' requests, four different variances for manufacturing overhead are computed each month. The information for the September overhead expenditures is as follows:

Budgeted output units

$3$

$,$

$2$

$0$

$0$

$$units

Budgeted fixed manufacturing overhead$

$2$

$0$

$,$

$0$

$0$

$0$

Budgeted variable manufacturing overhead $

$5$

$$per direct labor hour

Budgeted direct manufacturing labor hours

$2$

$$hours per unit

Fixed manufacturing costs incurred $

$2$

$6$

$,$

$0$

$0$

$0$

Direct manufacturing labor hours used

$7$

$,$

$2$

$0$

$0$

Variable manufacturing costs incurred $

$3$

$5$

$,$

$6$

$0$

$0$

Actual units manufactured

$3$

$,$

$4$

$0$

$0$

Using a

$3$

$-$

variance analysis for the plant manager, compute the Production

$-$

volume variance.

Group of answer choices

$5$

$,$

$6$

$0$

$0$

$$unfavorable

$

$7$

$,$

$6$

$0$

$0$

$$unfavorable

$

$1$

$,$

$2$

$5$

$0$

$$favorable

$

$2$

$,$

$0$

$0$

$0$

$$unfavorable