Martin Company,which Applies Overhead to Production on the Basis of Machine

Multiple Choice

Martin Company,which applies overhead to production on the basis of machine hours,reported the following data for the period just ended:
Actual units produced: 9,000
Actual variable overhead incurred: $54,400
Actual machine hours worked: 16,000
Standard variable overhead cost per machine hour: $3.50
If Martin estimates two hours to manufacture a completed unit,the company's variable-overhead efficiency variance is:

A) $1,600 favorable.
B) $1,600 unfavorable.
C) $7,000 favorable.
D) $7,000 unfavorable.
E) some other amount not listed abovE.