Fixed production costs for the Velvet Corporation are budgeted at $80,000, assuming 40,000 units of production. Actual sales for the period were 35,000 units, while actual production was 40,000 units. Actual fixed costs were $70,000. What is the budget variance?

Group of answer choices

$10,000 unfavorable

$0

$10,000 favorable

All of the other answers are incorrect.