Computing an overhead efficiency variance. Determine the overhead efficiency variance for the month. Is it favorable or unfavorable?The standard manufacturing overhead cost of one unit of product in a department is

$17.50 for 19X1, computed as follows:

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Number of units produced at normal volume Number of direct labor hours at normal volume Fixed overhead budgeted Variable overhead budgeted (25,000 hours at $3 per hour) Total budgeted costs at normal capacity Standard overhead per unit ($175,000 + 10,000 units) 10,000 units 25,000 hours $100,000 75,000 175,000 17.50 During May, 1,200 units were produced requiring 3,010 hours of labor. The total costs were Fixed Variable $ 8,333 8,729 Total $17,062