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

Actual total factory overhead cost incurred	$ 24,000
Actual fixed overhead cost incurred	$ 10,000
Budgeted fixed overhead cost	$ 11,000
Actual machine hours	5,000
Standard machine hours allowed for the units manufactured	4,800
Denominator volumemachine hours	5,500
Standard variable overhead rate per machine hour	$ 3.00

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

Multiple Choice

• $400 favorable.

• $600 unfavorable.

• $1,400 favorable.

• $1,400 unfavorable.

• $2,000 favorable.