he standard costs and actual costs for factory overhead for the manufacture of 2,600 units of actual production are as follows:

Standard Costs

Fixed overhead (based on 10,000 hours) 3 hours per unit @ $0.73 per hour

Variable overhead 3 hours per unit @ $2.03 per hour

Actual Costs

Total variable cost, $18,200

fixed cost, $8,200

The amount of the fixed factory overhead volume variance is

$1,285 favorable

$0

$1,606 unfavorable

$1,285 unfavorable