Forward Venture Company, which uses a standard cost system, budgeted $640,000 of fixed overhead when 40,000 machine hours were anticipated. Other data for the period were: Actual units produced: 12,000 Standard production time per unit: 3.2 machine hours Fixed overhead incurred: $660,000 Actual machine hours worked: 45,000 Forward Venture Companys fixed-overhead budget variance is:

Multiple Choice

• $12,000 favorable.

• $25,600 unfavorable.

• $25,600 favorable.

• $20,000 favorable.

• $20,000 unfavorable.