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	$	28,000
Actual fixed overhead cost incurred	$	9,000
Budgeted fixed overhead cost	$	8,000
Actual machine hours		8,000
Standard machine hours allowed for the units manufactured		4,100
Denominator volumemachine hours		4,800
Standard variable overhead rate per machine hour	$	3

Under a three-variance breakdown (decomposition) of the total factory overhead variance, the total factory overhead spending variance, to the nearest whole dollar, is:

Multiple Choice

• $0.

• $2,600 unfavorable.

• $3,400 favorable.

• $3,400 unfavorable.

• $4,000 favorable.