Neptune Inc. uses a standard cost system and has the following information for the most recent month, April:

Actual direct labor hours (DLHs) worked17,000

Standard DLHs allowed for good output produced this period18,000

Actual total factory overhead costs incurred$45,400

Budgeted fixed factory overhead costs$10,800

Denominator activity level, in direct labor hours (DLHs)15,000

Total factory overhead application rate per standard DLH$2.70

Thevariable factory overhead efficiency variancefor Neptune, Inc. in April, to the nearest whole dollar, was:

• $940 unfavorable.
• $3,200 favorable.
• $1,040 favorable.
• $1,980 favorable.
• $2,160 favorable.