The following budget data pertain to the Machining Department of Tarleton Co.:

Maximum capacity	60,000	units
Machine hourse per unit	2.50
Variable factory overhead	$3.60	per machine hour
Fixed factory overhead	$433,500

The company prepared the budget at 85% of the maximum capacity level. The department uses machine hours as the basis for applying standard factory overhead costs to production.

During the year the Machining Department produced 50,000 units, consuming 127,500 machine hours and incurring $433,500 of fixed overhead. For the current year the department has a unfavorable production volume variance of: