The Maxit Corporation has a standard costing system in which variable manufacturing overhead is assigned to production on the basis of standard machine-hours. The following data are available for July: Actual variable manufacturing overhead cost incurred: $25,480 Actual machine-hours worked: 2,900 hours Variable overhead rate variance: $5,370 U Total variable overhead spending variance: $7,480 U The variable overhead efficiency variance for July is:

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1) the stages a new product goes through from beginning to end, i.e., the stages that a product passes through from introduction through growth, maturity, and decline. 2) the time from initial research and development to the time at which sales and support of the product to customers are withdrawn. 3) the period of time during which a product can be produced and marketed profitably.

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