The standard costs and actual costs for factory overhead for the manufacture of 2,500 units of actual

production are as follows:

Standard Costs

Fixed overhead (based on 10,000 hours) 3 hours @ $.80 per hour

Variable overhead 3 hours @ $2.00 per hour

Actual Costs

Total variable cost, $18,000

Total fixed cost, $8,000

The amount of the factory overhead controllable variance is:

$2,000 unfavorable

$3,000 favorable

$0

$3,000 unfavorable