SouthHaven Corporation applies overhead based on direct labor hours. According to standard cost card, the variable overhead standard is 9.5 hours at $18.5 per hour. During July, SouthHaven produced 3,500 units using 32,380 labor hours and spent $611,700 for variable overhead. What is the variable overhead efficiency variance?

• $16,095 favorable

• $534,280 favorable

• $12,670 favorable

• $12,670 unfavorable