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

Direct labor standard (2 hours @ $12.75/hour)	$ 25.50	per finished unit
Actual direct labor hours	81,500	hours
Budgeted units	42,000	units
Actual finished units produced	40,000	units
Standard variable OH rate (2 hours @ $14.30/hour)	$ 28.60	per finished unit
Standard fixed OH rate ($336,000/42,000 units)	$ 8.00	per unit
Actual cost of variable overhead costs incurred	$ 1,140,000
Actual cost of fixed overhead costs incurred	$ 338,000

Multiple Choice

• $18,300 unfavorable.

• $18,000 unfavorable.

• $18,300 favorable.

• $14,300 unfavorable.

• $18,000 favorable.