The Phelps Company applies overhead costs to products on the basis of standard direct labor-hours. The standard cost card shows that 4 direct labor-hours are required per unit of product. Phelps Company had the following budgeted and actual data for March:

	Actual	Budgeted
Units produced	15,000	13,000
Direct labor-hours	54,000	52,000
Variable overhead costs	$51,900	$42,900
Fixed overhead costs	$24,800	$23,400

The budgeted direct labor-hours is used as the denominator activity for the month.

The fixed manufacturing overhead budget variance for March is:

$1,400 favorable

$1,634 favorable

$234 favorable

$1,400 unfavorable