Kris Company calculates its predetermined rates using practical volume, which is 325,000 units. The standard cost system allows 3 direct labor hours per unit produced. Overhead is applied using direct labor hours. The total budgeted overhead is $4,260,000, of which $994,000 is fixed overhead. The actual results for the year are as follows:

Units produced: 318,000

Direct labor: 965,000 hours @

$12.00/hour

Variable overhead: $3,302,000

Fixed overhead: $998,000

Calculate the fixed overhead volume variance.

a. $32,000 U

b. $20,000 F

c. $22,000 F

d. $4,000 U

e. None of these.