MC Qu. 11-59 Priority Company, which applies overhead... Priority Company, which applies overhead to production on the basis of machine hours, reported the following data for the period just ended: Actual units produced: 15,000 Actual variable overhead incurred: $50,400 Actual machine hours worked: 16,000 Standard variable overhead cost per machine hour: $3.30 If Priority estimates 1.20 hours to manufacture a completed unit, the company's variable-overhead efficiency variance is: Multiple Choice $2,400 favorable. $2,400 unfavorable. $6,600 favorable. $6,600 unfavorable. None of the answers is correct.