36.

Zacher Corporation makes a product with the following standards for direct labor and variable overhead:

	Standard Quantity or Hours	Standard Price or Rate		Standard Cost Per Unit
Direct labor	0.3 hours	$18.00	per hour	$5.40
Variable overhead	0.3 hours	$7.00	per hour	$2.10

In February, the company's budgeted production was 3,800 units, but the actual production was 3,990 units. The company used 1,050 direct labor-hours to produce this output. The actual variable overhead cost was $7,917. The company applies variable overhead on the basis of direct labor-hours. The variable overhead efficiency variance for February is:

$1,063 U

$1,029 U

$1,029 F

$1,063 F