Hottie Inc., has the following standard and actual costs for the period.

Hottie Inc Standard Costs

Costs	Standard	Standard cost per unit
Direct Materials	15 pounds @$4/pound	60
Direct Labor	3 hours @$15/hour	45
Variable OH	3 hours @ $5/hour	15
Fixed OH	3 hours @ $3/hour	9

The Budgeted Fixed OH rate is based on the expected operating level of 8,000 units per month.

During the month, Hottie produced 9,000 units and used 31,000 Direct Labor Hours.

Actual Variable Overhead costs were $136,500. Actual Fixed Overhead costs were $73,500.

What was the Variable OH Efficiency Variance?

Group of answer choices:

A. 1,500 Favorable

B. 18,500 Favorable

C. 1,500 Unfavorable

D. 18,500 Unfavorable

E. 20,000 Favorable

F. 20,000 Unfavorable