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 $ 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 (to nearest whole dollar) is:

Multiple Choice

• $400 favorable.

• $600 unfavorable.

• $1,400 favorable.

• $1,400 unfavorable.

• $2,000 favorable.