A manufacturing company that has only one product has established the following standards for its variable manufacturing overhead. The company bases its variable manufacturing overhead standards on direct labor-hours.

Standard hours per unit of output		3.20	DLHs
Standard variable overhead rate	$	10.55	per DLH

The following data pertain to operations for the last month:

Actual direct labor-hours		9,400	DLHs
Actual total variable manufacturing overhead cost	$	95,780
Actual output		2,700	units

What is the variable overhead efficiency variance for the month?

Multiple Choice

• $8,018 U

• $7,573 F

• $4,272 U

• $7,573 U