Eminem, Inc. manufactures music CDs. At the start of 2020, Eminem planned to produce 108,000 CDs for which the standard cost for each CD is:

Plastic (0.25 pounds at $6.00 per pound)

$1.50

Labor (0.10 hour at $12.00 per hour)

1.20

Overhead ($0.80 fixed and $0.60 variable)

1.40

Total

$4.10

Overhead is allocated based on the number of units produced. Eminem isolates material purchase variances at the point of purchase. The following information summarizes Eminem's results for 2020:

Actual production

111,000 CDs

Actual variable overhead

$65,000

Actual fixed overhead

$83,000

How much is the overhead volume variance for 2020?

$4,400 favorable

$1,600 favorable

$1,200 unfavorable

$2,400 favorable

$3,200 favorable