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What is variable manufacturing overhead efficiency variance

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Question - Fabian Fabrication machines heavy-duty brake rotors that are used on commercial airliners. Fabian's management developed the following standard costs:

Standard direct labor hours per rotor: 2.40

Standard overhead rate per direct labor hour: $11.25

Actual activity for October-

Actual overhead costs incurred: $136,800

Actual direct labor hours: 11,400

Actual rotors machined: 4,100

What is the variable manufacturing overhead efficiency variance in October?

A) $8,550 favorable

B) $17,550 unfavorable

C) $8,550 unfavorable

D) $17,550 favorable

Reference no: EM131589871

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