1. Roscoe Company maintains warehouses that stock items carried by its e-retailer clients. When one of Roscoe's clients receives an order from an online customer, the order is forwarded to Roscoe. Roscoe then pulls the item from the warehouse, packs it and ships it to the customer. Roscoe uses a predetermined variable overhead rate based on direct labor-hours. According to the company's records, 0.04 direct labor-hours are required to fulfill an order for one item and the variable overhead rate is $6.50 per direct-labor hour. During July, Roscoe shipped 240,000 orders using 9,200 direct labor-hours. The company incurred a total of $58,880 in variable overhead costs. (Note that this is the same data that was provided for the previous question.) The variable overhead efficiency variance during July was:

   		$920 favorable.
   		$920 unfavorable.
   		$2,600 favorable.
   		$2,600 unfavorable.