Pebble Beach Corporation had a budget of $250,000 for fixed costs last year. Pebble Beach Corporation budgeted the production of 20,000 units last year. Last year's fixed costs totaled $256,000 for the production of 22,000 units.

Show your calculations for credit and calculate the following:

1. Fixed cost spending variance and indicate whether it is favorable or unfavorable.
2. Fixed cost volume variance and indicate whether it is favorable or unfavorable.
3. Explain why the cost volume variance is favorable or unfavorable.