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	$ 36,000
Actual fixed overhead cost incurred	$ 17,000
Budgeted fixed overhead cost	$ 12,000
Actual machine hours	8,000
Standard machine hours allowed for the units manufactured	5,800
Denominator volumemachine hours	6,500
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; Round your final answer to zero decimal places.) PLEASE SHOW ALL WORK AND STEPS

Multiple Choice

A. $1,992 favorable.

B. $1,392 favorable.

C. $1,292 unfavorable.

D. $492 unfavorable.

E. $892 favorable.