General Mtg$.$ Co$.$ budgeted fixed overhead costs of $$25,000$ per quarter and $1,000$

units per quarter in its normal absorption costing system. Any volume variance is

carried forward and closed at year end. The company experienced the following

activity:

The volume variance in quarter $1$ was

a$)$ $$2,500$ Unfavorable

b$)$ $$10,000$ Unfavorable

c$)$ $$7,500$ Favorable

d$)$ $$5,000$ Favorable