Indigo Company uses a standard cost system. Indirect costs were budgeted at $210,000 plus $15 per direct labour hour. The overhead rate is based on 10,500 hours. Actual results were:

Standard direct labour hours allowed		8,860
Actual direct labour hours		10,500
Fixed overhead		$188,900
Variable overhead		$183,000

(a)

Calculate the fixed overhead production volume variance.

Fixed overhead production volume variance

$enter a dollar amount

select an option Neither favourable nor unfavourableFavourableUnfavourable