Ravena Labs., Incorporated makes a single product which has the following standards: Direct materials: 2.5 ounces at $20 per ounce Direct labor: 1.4 hours at $12.50 per hour Variable manufacturing overhead: 1.4 hours at 3.50 per hour Variable manufacturing overhead is applied on the basis of standard direct labor-hours.

The following data are available for October:

3,750 units of compound were produced during the month.

There was no beginning direct materials inventory.

Direct materials purchased: 12,000 ounces for $225,000.

The ending direct materials inventory was 2,000 ounces.

Direct labor-hours worked: 5,600 hours at a cost of $67,200.

Variable manufacturing overhead costs incurred amounted to $18,200.

Variable manufacturing overhead applied to products: $18,375.

The variable overhead efficiency variance for October is: Multiple Choice

$1,400 Favorable

$1,225 Unfavorable

$1,900 Unfavorable

$2,700 Favorable