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 per unit at $0.80 per hour
- Variable overhead 3 hours per unit at $2.00 per hour

Actual Costs
- Total variable cost, $18,000
- Total fixed cost, $8,000

The fixed factory overhead volume variance is;
a. $2,000 unfavorable
b. $2,000 favorable
c. $2,500 unfavorable
d. $0