Reddy Corporation has collected the following data for the month of June:

Actual total factory overhead incurred	$61,250
Budgeted fixed factory overhead costs	$42,000
Activity level in direct labor hour	15,000
Actual direct labor hours	18,000
Standard hours for output this period	17,000
Total factory overhead rate	$4.35

Required:

Calculate the variable overhead efficiency variance.

Work and Solution: