From the information in the table, the fixed production overhead volume variance (under absorption costing) is

1. 700 Adverse

2. 700 Favourable

3. 625 Favourable

4. 625 Adverse

Sales Direct Material Direct Labour Fixed production overhead Fixed selling & admin overhead Budgeted (400 units) 30 3kg x 4 2-hours x 5.50 f 12,000 4,800 4,400 2,500 1,700 -1,400 Actual (500 units) 32 2.8kg x 3.50 2.4 hours x 5 f 16,000 4,900 6,000 3,200 2,300 -400 Budgeted Profit Actual Profit