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	$	35,000
Actual fixed overhead cost incurred	$	12,000
Budgeted fixed overhead cost	$	10,000
Actual machine hours		5,340
Standard machine hours allowed for the units manufactured		5,030
Denominator volumemachine hours		5,730
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

• $930 unfavorable.

• $2,330 favorable.

• $1,730 favorable.

• $1,730 unfavorable.

• $730 favorable.