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 $ 18,000 Budgeted fixed overhead cost $ 10,000 Actual machine hours 8,000 Standard machine hours allowed for the units manufactured 5,500 Denominator volumemachine hours 8,500 Standard variable overhead rate per machine hour $ 3 The variable overhead spending variance is: