During 2022, Kingbird Corp. produced 38,800 units and sold 38,800 for $14.00 per unit. Variable manufacturing costs were $7.00 pe unit. Annual fixed manufacturing overhead was $77,600 ($2.00 per unit). Variable selling and administrative costs were $2.00 per unit sold, and fixed selling and administrative expenses were $19,400. Suppose the accountant for Kingbird Corp. uses normal-absorption costing and uses the budgeted volume of 48,500 units to allocate the fixed overhead rather than the actual production volume of 38,800 units. The company expenses production volume variance to cost of goods sold in the accounting period in which it occurs.