A manufacturing company that has only one product has established the following standards for its variable manufacturing overhead. The company bases its variable manufacturing overhead standards on direct labor-hours.

Standard hours per unit of output	4.10 direct labor-hours
Standard variable overhead rate	$11.45 per direct labor-hour

The following data pertain to operations for the last month:

Actual direct labor-hours	8,500 direct labor-hours
Actual total variable manufacturing overhead cost	$ 95,870
Actual output	2,000 units

What is the variable overhead efficiency variance for the month?

Multiple Choice

• $2,652 Unfavorable

• $3,435 Unfavorable

• $7,133 Unfavorable

• $7,133 Favorable