The following information is available from the Arugula Company:

Actual factory overhead	$16,800
Actual fixed overhead expenses	$ 9,200
Budgeted fixed overhead expenses	$ 9,500
Actual hours	3,600
Budgeted hours	3,800
Standard hours allowed	3,500
Standard variable overhead rate per direct labor hour	$ 2.25

Assuming that Arugula uses a three-variance analysis of overhead variances, what is the production-volume variance?

Select one:

a. $800 favorable

b. $800 unfavorable

c. $500 favorable

d. $500 unfavorable