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	$	36,000
Actual fixed overhead cost incurred	$	17,000
Budgeted fixed overhead cost	$	13,000
Actual machine hours		7,000
Standard machine hours allowed for the units manufactured		4,600
Denominator volumemachine hours		7,500
Standard variable overhead rate per machine hour	$	3

The variable overhead spending variance, to the nearest whole dollar, is:

Multiple Choice

• $1,600 unfavorable.

• $2,000 favorable.

• $2,400 unfavorable.

• $2,500 favorable.

• $3,100 favorable.