Fordham Corporation produces a single product. The standard costs for one unit of its Concourse product are as follows:

Direct materials (6 pounds at $0.50 per pound) ……………….             $ 3

Direct labor (2 hours at $10 per hour) ………………………….                   20

Variable manufacturing overhead (2 hours at $5 per hour) ……        10

Total …………………………………………………………….                                       33

During November Year 2, 4,000 units of Concourse were produced. The costs associated with November operations were as follows:

Material purchased (36,000 pounds at $0.60 per pound) ………………. $21,600

Material used in production (28,000 pounds)

Direct labor (8,200 hours at $9.75 per hour) …………………………….           79,950

Variable manufacturing overhead incurred……………………………….          41,820

What is the variable overhead efficiency variance for Concourse for November Year 2?

1. $2,000 favorable.

2. $2,000 unfavorable.

3. $1,000 favorable.

4. $1,000 unfavorable.