Calculate the variable overhead efficiency variance for FrontGrade.

a. $450 F

b. $600 U

c. $1,050 F

d. $1,650 F

FrontGrade Systems allocates manufacturing overhead based on machine hours. Each
connector should require 11 machine hours. According to the static budget, FrontGrade
expected to incur the following:
1,100 machine hours per month (100 connectors × 11 machine hours per connector)
$5,500 in variable manufacturing overhead costs
$8,250 in fixed manufacturing overhead costs
During August, FrontGrade actually used 1,000 machine hours to make 110 connectors
and spent $5,600 in variable manufacturing costs and $8,300 in fixed manufacturing
overhead costs.