Use the following to answer questions 3-4; TG Inc. uses a standard cost system. Overhead costs are applied to products based on labor hours. Last year's records showed the following information: Actual variable overhead cost $77,400 Actual labor hours 35,500 hours Actual productive output 12,000 units of product Standard hours allowed for the actual output 36,000 hours The overhead budget for a 15000-unit planned output Variable overhead $90,000 - Fixed overhead $33.750 3. How much is the variable overhead efficiency variance? a. $6,400 unfavorable b. S1,000 unfavorable e. $1.000 favorable d. S6,400 favorable