Standard Corporation has developed standard manufacturing overhead costs based on a capacity of 180,000 direct labor-hours (DLHs) as follows:

Standard overhead costs per unit:

Variable portion: 2 DLHs $3 per DLH = $6

Fixed portion: 2 DLHs $5 per DLH = $10

The following data pertain to operations in April:

Actual output		80,000	units
Actual direct labor cost	$	644,000
Actual direct labor-hours worked		165,000	DLHs
Variable overhead cost incurred	$	518,000
Fixed overhead cost incurred	$	860,000

The variable overhead efficiency variance for April was:

Multiple Choice

• $23,000 Unfavorable

• $38,000 Favorable

• $38,000 Unfavorable

• $15,000 Unfavorable