14.

Smyer Corporation makes a product with the following standard costs:

	Standard Quantity or Hours	Standard Price or Rate	Standard Cost Per Unit
Direct materials	7.1 pounds	$5.00 per pound	$35.50
Direct labor	0.8 hours	$17.00 per hour	$13.60
Variable overhead	0.8 hours	$7.00 per hour	$5.60

The company reported the following results concerning this product in July.

Originally budgeted output	4,700	units
Actual output	4,500	units
Raw materials used in production	34,150	pounds
Actual direct labor-hours	3,610	hours
Purchases of raw materials	36,500	pounds
Actual price of raw materials	$5.10	per pound
Actual direct labor rate	$18.10	per hour
Actual variable overhead rate	$6.70	per hour

Variable overhead is applied on the basis of direct labor-hours. Compute the variable overhead efficiency variance.