Questions 8-9 are based on the following:

True Corp uses direct labor hours to allocate variable manufacturing overhead costs. The standards allow 2 direct labor hours to produce one unit of output. Standard variable overhead rate is $7 per direct labor hour. Other budgeted and actual numbers were as follows:

	Static Budget	Actual
Production (units)	4,000	4,150
Variable Overhead costs	$56,000	$55,350
Direct labor hours	8,000	8,200

Flag question: Question 8

Question 82.5 pts

What is the variable overhead efficiency variance?

Group of answer choices

$700 Favorable

$700 Unfavorable

$2,050 Favorable

$2,050 Unfavorable