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

Actual total factory overhead cost	$24,000
Actual fixed overhead cost	$10,000
Budgeted fixed overhead cost	$11,000
Actual machine hours	5,000
Standard machine hours for the units manufactured	4,800
Denominator volumemachine hours	5,500
Standard variable overhead rate per machine hour	$3

7) The variable factory overhead efficiency variance is:

A.	$600 unfavorable.

B.	$1,000 favorable.

C.	$1,400 unfavorable.

D.	$1,500 favorable.

E.	$2,100 favorable.

8) The factory overhead production volume variance is:

A.	$600 unfavorable.

B.	$1,000 favorable.

C.	$1,400 unfavorable.

D.	$1,500 favorable.

E.	$2,100 favorable.