Given the following data:

Actual units produced: 15,000

Actual variable overhead incurred: $49,800

Actual machine hours worked: 15,000

Standard variable overhead cost per machine hour: $3.40

ifoverhead is applied based onmachine hours and it is estimated to take1.10 machine hours to manufacture a unit, the variable overhead efficiency variance is:

• $1,200 favorable.
• $1,200 unfavorable.
• $5,100 favorable.
• $5,100 unfavorable.
• None of the answers is correct.