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	$	29,000
Actual fixed overhead cost incurred	$	13,000
Budgeted fixed overhead cost	$	9,000
Actual machine hours		7,000
Standard machine hours allowed for the units manufactured		4,900
Denominator volumemachine hours		5,600
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

• $1,125 unfavorable.

• $1,825 favorable.

• $1,225 favorable.

• $725 favorable.

• $325 unfavorable.