A manufacturing company that has only one product has

established the following standards for its variable overhead. The company uses

direct labour hours (DLHs) as its measure of activity.

Standard hours per unit of output …………………………………………….. 0.7

DLHs

Standard variable overhead rate ……………………………………………….. £14.30

per DLH

The following data pertain to operations for the last month:

Actual direct labour hours ………………………………………………………….. 1,600

DLHs

Actual total variable overhead cost ……………………………………………..

£22,400

Actual output ………………………………………………………………………………. 2,400 units

What is the variable overhead efficiency variance for the month?