Gerhan Company's flexible budget for the units manufactured in May shows $15,400 of total factory overhead; this output level represents 70% of available capacity. During May, the company applied overhead to production at the rate of $3.00 per direct labor hour (DLH), based on a denominator volume level of 5,850 DLHs, which represents 90% of available capacity. The company used 6,000 DLHs and incurred $16,600 of total factory overhead cost during May, including $7,300 of fixed factory overhead.

What is the fixed overhead production-volume variance (to the nearest whole dollar) for Gerhan Company in May? (Round your intermediate calculation to 2 decimal places.)

Multiple Choice

• $575 unfavorable.

• $1,755 unfavorable.

• $1,255 unfavorable.

• $1,075 unfavorable.

• $775 unfavorable.