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	$ 35,000
Actual fixed overhead cost incurred	$ 12,000
Budgeted fixed overhead cost	$ 10,000
Actual machine hours	9,000
Standard machine hours allowed for the units manufactured	5,400
Denominator volumemachine hours	6,500
Standard variable overhead rate per machine hour	$ 3

The variable factory overhead efficiency variance is:

Multiple Choice

$10,800 unfavorable.

$11,600 unfavorable.

$12,300 favorable.

$11,700 favorable.

$11,200 favorable.