The following information for the past year is available from Thinnews Co., a company that uses machine hours to apply standard factory overhead cost to outputs:

Actual total factory overhead cost incurred	$	37,000
Actual fixed overhead cost incurred	$	14,000
Budgeted fixed overhead cost	$	10,000
Actual machine hours		8,000
Standard machine hours allowed for the units manufactured		4,500
Denominator volumemachine hours		5,200
Standard variable overhead rate per machine hour	$	3

The fixed factory overhead production-volume variance, to the nearest whole dollar, is: (Do not round your intermediate calculations.)

Multiple Choice

• $546 unfavorable.

• $946 favorable.

• $1,346 unfavorable.

• $1,446 favorable.

• $2,046 favorable.