Bluecap Co. uses a standard cost system and flexible budgets for control purposes. The following budgeted information pertains to 2016:

Denominator volumenumber of units	8,000
Denominator volumepercent of capacity	80%
Denominator volumestandard direct labor hours	24,000
Budgeted variable factory overhead cost at denominator volume	$103,200
Total standard factory overhead rate per direct labor hour	$15.10

During 2016, Bluecap worked 28,000 direct labor hours and manufactured 9,600 units. The actual factory overhead cost for the year was $14,000 greater than the flexible budget amount for the units produced, of which $6,000 was due to fixed factory overhead. In preparing a budget for 2017 Bluecap decided to raise the level of operation to 90% of capacity (a level it considers to be "practical capacity"), to manufacture 9,000 units at a budgeted total of 27,000 direct labor hours. The variable overhead efficiency variance in 2016 for Bluecap Co. was:

$8,000 unfavorable.

$9,200 favorable.

$3,440 favorable.

$17,200 unfavorable.

$11,440 unfavorable.