The Upton Company Employs a Standard Costing System in Which

Multiple Choice

The Upton Company employs a standard costing system in which variable overhead is assigned to production on the basis of direct labour hours. Data for the month of February include the following:
$\begin{array} { | l | r | } \hline \text { Variable manufacturing overhead cost incurred } & \$ 48,700 \\\hline \text { Total variable overhead variance } & \$ 300 \text { favourable } \\\hline \text { Standard hours allowed for actual production } & 7,000 \\\hline \text { Actual direct labour hours worked } & 6,840 \\\hline\end{array}$

-What was the variable overhead efficiency variance?

A) $430 unfavourable.
B) $740 favourable.
C) $950 unfavourable.
D) $1,120 favourable.