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The standard variable overhead cost rate for the Croskey Company is $12 per unit. Budgeted...

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Accounting

The standard variable overhead cost rate for the Croskey Company is $12 per unit. Budgeted fixed overhead cost is $60,000. The Croskey Company budgeted 4,000 units for the current period and actually produced 3,860 finished units. Assume that the allocation base for fixed overhead costs is the number of units expected to be produced. What is the production volume variance?

Select one:

a. $3,780 unfavourable

b. $3,780 favourable

c. $2,100 favourable

d. $2,100 unfavourable

please explain

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