Designer Desks (DD) provided the following information:

Budgeted Variable Manufacturing Overhead (VOH)$54,000Budgeted Fixed Manufacturing Overhead (FOH)$162,000Budgeted Production18,000 units Budgeted Direct Labor Hours (DLH)27,000 hours Budgeted DLH per Unit1.5 DLH Standard: VOH 1.5 DLH @ $2 per Hour$3 per unit Standard: FOH 1.5 DLH @ $6 per Hour$9 per unit Actual VOH$68,250Actual FOH$148,000Actual Production20,000 units Actual DLH32,500

Based on the above information and assuming that DLH is a useful predictor of VOH, what is DD's variable overhead efficiency variance?

Group of answer choices

$5,000 Unfavorable

$5,000 Favorable

$3,250 Unfavorable

$3,250 Favorable