Gershwin Company produces a lightweight backpack that is popular with college students. Standard variable costs relating to a single backpack are given below:

Standard Quantity Standard Price Direct Materials $5.40 per yard Direct Labor ? per DLH Variable MOH $2.00 per DLH Manufacturing overhead (MOH) is applied to production on the basis of direct labor-hours. Selected information relating to the month's production is given below: Actual number of units produced in March 810 backpacks Actual direct labor-hours 1,400 DLHs The difference between standard and actual cost per backpack produced during March was $0.20 favorable. Material Used Direct Labor Variable MOH Total Total standard cost allowed $17,496 $17,496 $2,592 $37,584 Actual costs incurred $14,784 $3,679 BoT a 152,592 $37,584 10 Variable MOH efficiency variance is: $208.00 Favorable $208.00 Unfavorable $879.00 Favorable $879.00 Unfavorable None of the above