Zennick Fashion Products Uses Standard Costs for Their Manufacturing Division

Multiple Choice

Zennick Fashion Products uses standard costs for their manufacturing division. Standards specify 3.0 direct labor hours per unit of product. At the beginning of the year, the static budget for variable overhead costs included the following data:
$$\begin{array}{l}\begin{array} { l l } \text { Production volume: } & 1,000 \text { units } \\\text { Estimated variable overhead costs: } & \$ 120,000 \\\text { Estimated direct labor hours: } & 3,000 \text { hours }\end{array}\\\text { At the end of the year, actual data were as follows: }\\\begin{array} { l l } \text { Production volume: } & 1,500 \text { units } \\\text { Actual variable overhead costs: } & \$ 174,300 \\\text { Actual direct labor hours: } & 4,200 \text { hours }\end{array}\end{array}$$
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How much is the efficiency variance for variable overhead?

A) $6,300 Favorable
B) $6,300 Unfavorable
C) $12,000 Favorable
D) $12,000 Unfavorable