The Maxit Corporation has a standard costing system in which variable manufacturing overhead is assigned to production on the basis of standard machine-hours. The following data are available for July:

Actual variable manufacturing overhead cost incurred: $25,260

Actual machine-hours worked: 2,800 hours

Variable overhead rate variance: $5,220 U

Total variable overhead spending variance: $7,260 U

The variable overhead efficiency variance for July is:

Multiple Choice $12,480 F

$2,040 U

$2,040 F

$12,480 U