MA-Rev is an electronics firm operating in Malaysia that specialises in smart mobile devices. Facing intense competition from manufacturers in the region, MA-Rev launched a cost control initiative to improve operational efficiency and protect its margins. This new regime started in October 202X, where production targets were revised and procurement policies tightened. The company allocates fixed overheads based on direct labour hours. Monthly planned production is 14,000 units.

The standard cost per unit of its flagship smart sensor is as follows:

·       Direct materials: 4 kg @ RM20 per kg

·       Direct labour: 3 hours @ RM28 per hour

·       Fixed overhead: RM30 per hour

In October, MA-Rev produced 13,200 units. Materials used was: 35,000 kg at RM21.50 per kg. Labour hours were 40,500 at RM26 per hour. RM405,000 incurred for fixed overhead.

What is the labour efficiency variance?