Zero Company's standard factory overhead rate is $3.47 per direct labor hour (DLH), calculated at 83.00% capacity = 830 standard DLHs. In December, the company operated at 73.00% of capacity, or 730 standard DLHs. Budgeted factory overhead at 73.00% of capacity is $2,902, of which $1,259 is fixed overhead. For December, the actual factory overhead cost was $3,570 for 784 actual DLHs, of which $1,220 was for fixed factory overhead.

What is the factory overhead production volume variance for Zero Company in December?

$39 favorable

$152 favorable

$585 unfavorable

$152 unfavorable

$39 unfavorable