The following additional information is available for the variable overhead costs in question 2:

¢ Standard cost per unit of product 2 liters of raw materials @ \($16\) per liter

¢ Actual use of raw materials was 13,000 liters and actual variable overhead was \($208,000\) The variable overhead spending and variable overhead efficiency variances are:

a. \($32,000\) U spending and \($0\) efficiency

b. \($32,000\) U spending and \($16,000\) U efficiency

c. \($16,000\) U spending and \($32,000\) U efficiency

d. \($0\) spending and \($32,000\) U efficiency