Merle Corporation applies manufacturing overhead to products on the basis of standard machine-hours. For the most recent month, the company based its budget on 4,000 machine-hours. Budgeted and actual overhead costs for the month appear below:

	Based on 4000
	Mach Hours
Var Ovhd Cost
Supplies	$ 14,000.00	$ 13,150.00
Indirect Labor	27200	24390
Fixed Ovhd Cost
Supervision	19900	19540
Utilities	4700	4360
Factory depreciation	8800	8620
Total Ovh Cost	$ 74,600.00	$ 70,060.00

The company actually worked 3,690 machine-hours during the month. The standard hours allowed for the actual output were 3,620 machine-hours for the month. What was the overall variable overhead efficiency variance for the month?

A.	$721 Unfavorable

B.	$467 Favorable

C.	$254 Unfavorable

D.	$880 Favorable