Jaune Company uses a standard cost system that applies manufacturing overhead to units of product on the basis of direct labour hours (DLHs). The following data pertain to last month's operations:

Budgeted Fixed Overhead Costs	$5,000
Actual Fixed Overhead Costs	$5,500
Standard Hours Allowed for Output	2,400 DLHs
Predetermined Overhead Rate ($2 variable + $3 fixed)	$5 per DLH

What was the fixed overhead budget variance?

Multiple Choice

• $500 favourable.

• $500 unfavourable.

• $2,200 unfavourable.

• $1,700 unfavourable.