Corie Engineering makes a product with the following standards for variable manufacturing overhead:

Standard Hours Standard Rate

Variable manufacturing overhead 0.4 direct labor hours $9 per hour

Variable manufacturing overhead is applied to the product on the basis of standard direct labor-hours.

Budgeted production in the master budget was 2,850 units for March.

The following events occurred during March:

2,750 units of the product were actually produced during March.

1,080 actual direct labor hours were worked during March.

Actual variable manufacturing overhead rate during March was $8.65 per direct labor hour.

Variable manufacturing overhead efficiency variance for March is:

$285.00 favorable

$173.00 favorable

$540.00 favorable

$180.00 favorable