Assume fixed overhead was budgeted at $812,000 when 62,000 machine hours were estimated to be used. Given the following data:

Actual units produced: 13,060

Actual machine hours worked: 63,800

Actual variable overhead incurred: $487,000

Actual fixed overhead incurred: $802,100

Standard variable overhead rate per machine hour: $7.00

Standard production time per unit: 5 hours

the variable overhead efficiency variance is:

• $10,500U.
• $10,500F.
• $12,600U.
• $12,600F.
• None of the answers is correct.