Fletcher Company collected the following data regarding production of one of its products. Compute the variable overhead cost variance.

Direct labor standard (2.0 hours @ $12.80/hour)	$ 25.60	per finished unit
Actual direct labor hours	83,500	hours
Budgeted units	43,000	units
Actual finished units produced	41,000	units
Standard variable OH rate (2 hours @ $17.00/hour)	$ 34.00	per finished unit
Standard fixed OH rate ($352,600/43,000 units)	$ 8.20	per unit
Actual cost of variable overhead costs incurred	$ 1,385,000
Actual cost of fixed overhead costs incurred	$ 350,000

Multiple Choice

$7,200 favorable.

$16,000 favorable.

$16,200 unfavorable.

$16,000 unfavorable.

$9,000 favorable.