The standard costs and actual costs for factory overhead for the manufacture of 2,600 units of actual production are as follows:

Standard Costs
Fixed overhead (based on 10,000 hours)	3 hours per unit @ $0.74 per hour
Variable overhead	3 hours per unit @ $2.05 per hour
Actual Costs
Total variable cost, $17,800
Total fixed cost, $7,900

The total factory overhead cost variance is

a.$3,438 favorable

b.$3,438 unfavorable

c.$5,066 favorable

d.$1,810 unfavorable