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

Direct labor standard (2 hrs. @ $12.75/hr.)	$	25.50		per finished unit
Actual direct labor hours		81,500		hrs.
Budgeted units		42,000		units
Actual finished units produced		40,000		units
Standard variable OH rate (2 hrs. @ $14.30/hr.)	$	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

• $18,000 favorable.

• $4,000 favorable.

• $18,000 unfavorable.

• $18,300 favorable.

• $14,300 unfavorable.