Mattison Company has developed cost formulas for the drivers of the following production activities:

Driver	Activity	Fixed	Variable
Labor hours	Materials	$ 0	$ 20
Labor hours	Labor	0	10
Machine hours	Maintenance	10,000	8
Machine hours	Machining	50,000	2
Number of setups	Inspections	30,000	200
Number of setups	Setups	0	300
Number of purchase orders	Purchasing	75,000	3

If the actual activity was 20 setups and the actual fixed cost for inspections was $28,000 and the variable cost for inspections was $5,000, the total variance for inspections is

a.$1,000 favorable.

b.$2,000 favorable.

c.$2,000 unfavorable.

d.$1,000 unfavorable.