ACME manufacturing is a low-cost producer of a single, commodity product: RGL-01. Standard overhead cost information for one unit of this product is presented below:

Standard number of machine hours per unit produced		0.5
Standard variable overhead rate per machine hour	$	30.00
Budgeted fixed overhead (for the year)	$	300,000
Practical capacity, in units (annual basis)		10,000
Budgeted output for the coming year, in units		8,000
Normal capacity, in units (per year)		9,000
Actual production for the year (in units)		9,200
Actual overhead costs incurred during the year:
Fixed overhead	$	288,000
Variable overhead	$	142,600
Actual number of machine hours per unit for work done this period		0.49

5. What is the Overhead Efficiency Variance (= Variable Overhead Efficiency Variance) for the year when the overhead application rate per machine hour is determined under each of the following options: (a) budgeted output, (b) normal capacity, and (c) practical capacity? Indicate whether each variance is favorable (F) or unfavorable (U).

	Budgeted Output		Normal Capacity		Practical Capacity
Variable overhead efficiency variance