The following information relating to a company's overhead costs is available.

Budgeted fixed overhead rate per machine hour	$	0.50
Actual variable overhead	$	73,000
Budgeted variable overhead rate per machine hour	$	2.50
Actual fixed overhead	$	17,000
Budgeted hours allowed for actual output achieved		32,000

Based on this information, the total overhead variance is:

Multiple Choice

• $6,000 favorable.

• $1,000 favorable.

• $7,000 favorable.

• $6,000 unfavorable.

• $1,000 unfavorable.