The Malcolm Company uses a standard cost system in which manufacturing overhead costs are applied to products on the basis of direct labor-hours (DLHs). The standards call for 3 hours of direct labor per unit produced. The following data pertain to the company's manufacturing overhead for the month of July:

	Actual fixed overhead cost incurred	$28,450
	Budgeted activity	8,400	DLHs
	Number of units produced	2,900	units

Budget variance

$3,250

Unfavorable

The production volume variance for July is: