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	$	28,000
Actual fixed overhead cost incurred	$	11,000
Budgeted fixed overhead cost	$	10,000
Actual machine hours		7,000
Standard machine hours allowed for the units manufactured		4,700
Denominator volumemachine hours		7,500
Standard variable overhead rate per machine hour	$	3

The variable factory overhead efficiency variance, to the nearest dollar, is:

Multiple Choice

• $6,900 unfavorable.

• $7,300 favorable.

• $7,700 unfavorable.

• $7,800 favorable.

• $8,400 favorable.