Austin Company allocates manufacturing overhead based on machine hours. Each chair produced should require 4 machine hours. Standard variable cost per machine hour is $5.40.

During January, Austin Company actually used 2,100 machine hours to make 510 chairs. The company spent $11,130 in variable manufacturing overhead costs and $9,100 in fixed manufacturing overhead costs.

What is the variable overhead cost variance?

• $324 U

• $210 U

• $324 F

• $210 F

• I DON'T KNOW YET