The following information for the past year is available from Thinnews Co., a company that uses machine hours to apply standard factory overhead cost to outputs:

Actual total factory overhead cost incurred	$	29,000
Actual fixed overhead cost incurred	$	10,000
Budgeted fixed overhead cost	$	12,000
Actual machine hours		5,160
Standard machine hours allowed for the units manufactured		4,940
Denominator volumemachine hours		5,640
Standard variable overhead rate per machine hour	$	3

Under a three-variance breakdown (decomposition) of the total factory overhead variance, the factory overhead efficiency variance (to nearest whole dollar) is:

Multiple Choice

• $460 favorable.

• $660 unfavorable.

• $1,460 favorable.

• $1,460 unfavorable.

• $2,060 favorable.