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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

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 $ 28,000
Actual fixed overhead cost incurred $ 7,000
Budgeted fixed overhead cost $ 10,000
Actual machine hours 8,000
Standard machine hours allowed for the units manufactured 5,500
Denominator volumemachine hours 6,200
Standard variable overhead rate per machine hour $ 3

Under a three-variance breakdown (decomposition) of the total factory overhead variance, 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.)

Multiple Choice

$129 favorable.

$1,129 unfavorable.

$1,129 favorable.

$329 unfavorable.

$1,829 favorable.

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