McLennan Companys static budget overhead costs and actual overhead costs are given below for March.

	Static Budget	Actual
Units produced	100,000	80,000
Variable overhead costs:
Indirect materials	$20,000	$19,300
Indirect labor	40,000	39,000
Utilities	50,000	48,500
Fixed overhead costs:
Insurance	40,000	40,500
Rent	20,000	21,000

The flexible budget variance for insurance on the companys March flexible budget performance report was:

$8,500 favorable

$8,500 unfavorable

$500 favorable

$500 unfavorable