The Maxwell 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: $25,040

Actual machine-hours worked: 2,700 hours

Variable overhead rate variance: $5,070 Unfavorable

Total variable overhead spending variance: $7,040 Unfavorable

The variable overhead efficiency variance for July is:

$12,110 Favorable

$1,970 Favorable

$12,110 Unfavorable

$1,970 Unfavorable