Rollo Company Has Developed Cost Formulas for the Drivers of the Following

Multiple Choice

Rollo Company has developed cost formulas for the drivers of the following production activities:
$$\begin{array} { l l c c } \text { Driver } & \text { Activits } & \text { Fixed } & \text { Variale } \\\hline \text { Labour hours } & \text { Materials } & \$ 0 & \$ 20 \\\text { Labour hours } & \text { Labour } & 0 & 10 \\\text { Machine hours } & \text { Maintenance } & 10,000 & 8 \\\text { Machine hours } & \text { Machiring } & 50,000 & 2 \\\text { Number of setups } & \text { Inspections } & 30,000 & 200 \\\text { Number of setups } & \text { Setups } & 0 & 300 \\\text { Number of purchase arders } & \text { Purchasing } & 75,00 & 3\end{array}$$
-Refer to the figure.If the actual activity was 20 setups,the actual fixed cost for inspections was $28,000,and the variable cost for inspections was $5,000,what is the total variance for inspections?

A) $2,000 favourable
B) $2,000 unfavourable
C) $1,000 favourable
D) $1,000 unfavourable