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

Actual total factory overhead cost incurred	$ 33,000
Actual fixed overhead cost incurred	$ 7,000
Budgeted fixed overhead cost	$ 9,000
Actual machine hours	9,000
Standard machine hours allowed for the units manufactured	5,400
Denominator volumemachine hours	6,100
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 is:

Multiple Choice

• $2,400 favorable.

• $3,000 favorable.

• $2,400 unfavorable.

• $0.

• $1,600 unfavorable.