The following information is available for the Danske Company:

Denominator hours for May		16,500
Actual hours worked during May		16,400
Standard hours allowed for May		13,200
Flexible budget fixed overhead cost	$	75,000
Actual fixed overhead costs for May	$	78,000

Danske Company had total underapplied overhead of $16,200. Additional information is as follows:

Variable Overhead:
Applied based on standard direct labor hours allowed	$	54,000
Budgeted based on standard direct labor hours		39,200
Fixed Overhead:
Applied based on standard direct labor hours allowed	$	42,000
Budgeted based on standard direct labor hours		28,200

Is the production volume variance favorable or unfavorable?

explain how