The production team for Company A recently prepared a manufacturing cost budget for an output of 50,000 units, as follows:

Actual costs incurred during the production of 60,000 units were: direct materials, $110,000; direct labor, $60,000; variable overhead, $100,000; and fixed overhead, $97,000. If Company A evaluates performance by the use of a flexible budget, determine the dollar amount of the variance and if the variance is favorable or unfavorable.