Fletcher Company collected the following data regarding production of one of its products. Compute the variable overhead efficiency variance.

Direct labor standard (2 hrs. @ $12.40/hr.)	$	24.80		per finished unit
Actual direct labor hours		96,500		hrs.
Budgeted units		56,000		units
Actual finished units produced		47,500		units
Standard variable OH rate (2 hrs. @ $15.00/hr.)	$	30.00		per finished unit
Standard fixed OH rate ($526,400/56,000 units)	$	9.40		per unit
Actual cost of variable overhead costs incurred	$	1,417,000
Actual cost of fixed overhead costs incurred	$	530,000

Multiple Choice

• $210,000 unfavorable.

• $22,500 favorable.

• $8,000 unfavorable.

• $8,000 favorable.

• $22,500 unfavorable.