The standard costs and actual costs for factory overhead for the manufacture of 2,729 units of actual production are as follows:

Standard Costs

Fixed overhead (based on 10,000 units) 3 hours @ $0.80 per hour

Variable overhead 3 hours @ $1.90 per hour

Actual Costs

Total variable cost, $17,978

Total fixed cost, $8,082

Determine the amount of fixed factory overhead variance.

Select the correct answer.

a. $1,532 favorable

b. $1,532 unfavorable

c. $3,955 unfavorable

d. $2,423 unfavorable