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Please show step by step how to solve. Grant Parker, manager of Denver Company, wants to compute the variable overhead efficiency variance for the year.

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Grant Parker, manager of Denver Company, wants to compute the variable overhead efficiency variance for the year. He has the following details:

Variable overhead flexible budget variance (unfavorable)

$47,250

Budgeted input quantity allowed for actual output

9,000 units

Actual input quantity used of cost-allocation base used

10,125 units

Budgeted variable overhead cost per unit of cost-allocation base

$60

Actual variable overhead cost per unit of cost-allocation base

$58

What will be the variable overhead efficiency variance for the year? Favorable or unfavorable?

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