For the year $2020,$ KIKO Ltd budgeted to produce $15,000$ units of its product, KITO, and to

use $30,000$ machine hours $($that is $2$ machine hours per unit of KITO$).$ The company allocates

both variable and fixed manufacturing overhead costs using machine hours. Variable

manufacturing overhead costs were budgeted at $$10$ per machine hour, and total budgeted

fixed manufacturing costs were $$600,000.$

Actual results for the year $2020$ were:

Q$31.$ The production volume variance is:

$$6,400F$

$$40,000F$

$$40,000U$

$$6,400U$

$$33,600U$